Gujarat Electricity Board pays ONGC for gas

Vol 8, PW 17 (17 Nov 04) News in Brief
     

ONGCs gas marketing office in Vadodara got richer by Rs32cr ($7m) this November after recovering the first instalment of a 20-year old outstanding payment from the Gujarat Electricity Board.

GEB owes ONGC Rs150cr ($40m) in outstanding payments for gas sold between 1st April 1982 and now. Of this, Rs86cr ($19m) is interest.

ONGC tells PETROWATCH that the second instalment of Rs31.88cr ($7m) will be paid by GEB on 30th November. It was difficult because we had to reconcile all the data and document from 1982 onwards.

ONGC is on a massive recovery drive to collect Rs6000cr ($1.3bn) in arrears from state-owned companies. Defaulters include IFFCO, Gujarat State Fertilisers, Gujarat Narmada Fertilisers and Vadodra Municipal Corporation.

Last August, ONGC recovered Rs5cr ($1m) from Jayant Paper Mills and GAIL after a settlement through the Bureau of Industrial and Financial Reconstruction.

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