CAG thrashes ONGC over Rs 8k Crores loss

The Comptroller and Auditor General of India (CAG) has lashed out to ONGC for their hiring and use of drilling rigs that resulted in a whopping loss of Rs. 7,995 Crores.

In a report presented in the Parliament today, CAG said the state-owned firm didn’t do enough homework while preparing the annual rig requirement plan (RRP), delayed many rig acquisitions and hiring, deployed manpower unevenly and had inefficient repair and refurbishment policy.

ONGC's non-productive time was between 19 and 23% over 2010-14. "The bulk of idling time costing Rs 6,418 crore was due to factors which could have been controlled by the company," CAG said.

The company also didn’t adhere to safety procedures and continued to do drilling/testing operations even after one anchor of its rig Sagar Vijay had snapped.

"The insurer did not honour the claim of ONGC on the ground that the latter had not followed recognized safe operating practice," the report said.

The oil company didn’t follow repair schedule either. Major lay-up repairs that were held up affected the machines’ efficiency.

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