The Hindu Business Line : ONGC signs performance contract with OVL

New Delhi, March 24 ONGC has signed a performance contract for 2008-09 with ONGC Videsh Ltd (OVL). According to a statement issued by the company, “ONGC would be signing the annual memorandum of understanding for 2008-09 with the Government of India on Wednesday. Prior to this, the holding company has to sign performance contracts with its subsidiaries.”

Last week ONGC had signed the performance contract with MRPL (Mangalore Refinery and Petrochemicals Ltd) and on Monday inked the contract with OVL.

Two years ago the task force on MoU constituted by the Department of Public Enterprises felt that for performance indicator, proper weightage should be assigned for subsidiaries/joint ventures in the understanding inked between the Ministry of Petroleum & Natural Gas and ONGC.

Performance

The weightage given to OVL when the first performance contract was signed for 2006-07 was 1 per cent in the ONGC and the nodal ministry MoU. Today it has moved up to 6 per cent for 2008-09 indicating the increasing focus and the importance of OVL.

New parameter

While the assessment of OVL two years ago was only on financial perspectives, this year it includes a new parameter ‘Project Implementation’, linking OVL’s achievements in project implementation.

This is in addition to the usual financial and operation parameters.

Mr R.S. Sharma, Chairman of ONGC Group Companies, and Mr R.S. Butola, Managing Director of OVL, exchanged documents after signing the contracts for 2008-09.

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