CITU is shocked to note from media reports that while the Govt was highlighting poor financial health of public sector Oil Marketing Companies (OMC) in the Parliament, to justify price hike of Petroleum products, it was simultaneously preparing for sale of 10% Govt shares in Indian Oil Corporation (IOC), the major Govt OMC, on the advice of Department of Disinvestment. Similarly on the same day when Director, Finance, IOC talked about IOC’s loss in the 1st quarter of 2010-11, Chairman IOC is quoted as saying “decontrol has improved the investor sentiment” and IOC shares had breached Rs. 400 mark following price reform.
CITU demands that Govt must clarify whether Govt’s plan to sell its shares in IOC is a distress sale when the financial health of IOC is poor or a part of creeping privatization of a financially strong Navratna PSU aspiring to be a Maharatna.
CITU strongly opposes Govt plans for disinvestment of 10% shares in IOC and 5% shares in ONGC to collect Rs. 20,440 crore from Public Sector Oil Companies to manage its revenue deficit. The much repeated claim of the Govt that its financial burden for the so called under recovery compensation to OMCs, which is Rs. 14,000 crore, looks hollow when it is making up the same through sale of shares of Oil PSUs.
CITU demands that Govt must put a halt to its game of deceipt and deception to cover up its revenue mopping exercise at the cost of “Aam Admi” to boost what IOC Chairman calls “Investor Sentiment” and to desist from selling shares of Navratna and Maharatna Oil PSUs, to satisfy the private investors, eyeing for Public Sector OMCs.
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