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Corporate Jul 2, 2013

Oil India loses Rs 200 cr for shutdowns, local demands in Assam

Guwahati: Oil India Ltd today said it has incurred a loss of around Rs 200 crore in 2012-13 due to hostile working environment in Assam like shutdowns, threat to staff and obstruction for not meeting local bodies' demands.

"We have had 290 instances of shutdowns, threats, blockades and other hostile activities in last fiscal in three districts of Assam -- Tinsukia, Dibrugarh and Sivasagar. This has led to a total loss of around Rs 200 crore," Oil India Ltd (OIL) chairman and managing director Sunil Kumar Srivastava told reporters in Guwahati.

Against the backdrop of such environment, OIL's crude oil production dipped to 3.701 million tonnes last fiscal from 3.884 million tonnes in 2011-12, he added.

"We had set a target to explore 3.95 million tonnes in the last fiscal, but we could not. Now this figure is this year's target," Srivastava said.

OIL had clocked a gross income of Rs 11,456.32 crore in 2012-13, while its net profit stood at Rs 3,589.34 crore.

When asked about the obstructions, OIL resident chief executive KK Nath said the company faced troubles from both organised and unorganised entities.

"We face demands. If we don't meet their demands, they obstruct our works... They usually demand job reservations from a particular community and locality, road construction, besides financial contributions," he added.

Nath said the company received various kinds of demands from around 300 organisations from the three districts last fiscal.

Asked if OIL informed the police and other security agencies, he said, "We have informed the district and state authorities, and we have received very positive support. However, this menace is still going on and OIL has become a soft target."

PTI

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