IOC employees to move court against privatisation plan

Last month Supreme Court had frozen privatisation of HPCL and BPCL saying the government could sell its equity in the two firm, which were nationalised through an act of Parliament, only after seeking approval of the legislature.

Indian Oil Employees Union president T.S. Rengarajan said IOC has historic need and necessity. ‘‘During the wars with Pakistan and China in 1960s and 1970s, the multinational oil firms refused to supply fuel to Indian Army… Its IOC which has been doing service to the nation throughout and we proved what assets we are to the country during the Kargil war.’’

‘‘We will fight the ill-conceived move through the streets to the court room,’’ Haque, who led a joint delegation of Indian Oil Officers Association and Indian Oil workmen unions to Petroleum Minister Ram Naik, said.

The proposal to split IOC into separate oil refining and petro fuel retailing firms and sell-off the latter would bleed the country’s largest firm which all this while has invested heavily in brand building and integration along the hydrocarbon value chain, he said.

Haque said the Government will have to take Parliament into confidence if it wants to privatise IOC or sell any of its arm. ‘‘Ours is a company of national importance. You cannot just sell it like that. Inclusion of IOC (on disinvestment agenda) was an afterthought to circumvent the Supreme Court impasse on HPCL and BPCL sale. This is totally wrong and we are exploring how best can we take legal remedy,’’ he said.

The unions were, however, not averse to government selling 20 per cent of IOC equity in capital market to garner funds to meet the revenue target from disinvestment proceeds. ‘‘We have no problem as long as IOC stays a public sector company. We were formed to serve the nation and not to benefit (other companies),’’ he said.