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OVL and ONGC sign Performance contract for the coming year
New Delhi, March 25, 2008
ONGC would be signing the annual MOU with the Government of
India on 26th March for the year 2008-09. Prior to this, the
holding company will have to sign performance contracts with
its subsidiaries.
Last week ONGC signed the performance contract with MRPL.
Today it was with OVL. R.S.Sharma, Chairman of ONGC Group
Companies and R.S.Butola, MD, OVL exchanged documents after
signing the contracts for 2008-09.
Two years ago the Task Force on MOU constituted by Department
of Public Enterprises felt that performance indicator with
proper weightage is to be assigned for subsidiaries/joint
ventures in the MOU between the Ministry and ONGC.
The adhoc Task Force on the Petroleum Industry is chaired by
former petroleum secretary Ashok Chandra while ONGC's Task
Force is headed by Dr.T.S.Vijayraghavan.
The weightage given to OVL when the first Performance Contract
was signed for 2006-07 was 1% in the ONGC-MoPNG MOU. Today it
has shot up to 6 % for the year 2008-09 indicating the
increasing focus and the importance of OVL.
While the assessment of OVL two years ago was only on
Financial perspectives alone, this year it includes a new
parameter 'Project Implementation' linking OVL's achievements
to realization of milestones in project implementation in
addition to the usual financial and operation parameters.
R.S.Sharma underlined the importance of the stand of the task
force that BE targets are sacrosanct. ONGC despite having
faced challenges will accord priority to meeting targets. He
hoped OVL would bag more producing Assets to meet
contingencies.
R.S.Butola who noted that OVL has had a tradition of
overachieving targets in the previous years, expressed
optimism that it would live up to expectations.
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