Ministry Asks ONGC to Scrap Farm In Decision for CBM Blocks
India’s oil ministry has asked state-run Oil & Natural Gas Corp (ONGC) to scrap its move to farm out stakes in four coal bed methane blocks to private energy firms without competitive bids, and asked it to invite global bids.
The latest move by the government comes as ONGC was about to award stakes in four CBM blocks to private firms it had chosen without open tender, ignoring views of the government nominees on its board, Economic Times reported citing a government official.
The newspaper report also said citing a board member that this decision by the government was undue intervention in the affairs of a 'Maharatna' company, which is empowered to take commercial decisions independently.
Government officials say that ministry has taken the decision keeping in mind the Central Vigilance Commission(CVC) guidelines.