ONGC cites losses in Assam amid employee unrest over overtime pay cut

The Oil and Natural Gas Corporation Limited (ONGC) is losing money in Assam because of low production and high employee headcount, the company claimed. It countered allegations of protesting employees over stoppage of contentious overtime payment.

In a statement, the ONGC emphasised that it is hiring locally and is investing heavily in the local community in Assam.

Reacting to a a sit-in by members of the ONGC Purbanchal Employees' Association (OPEA) at the Assam Asset in Nazira, the company said the demonstration, while peaceful, has been primarily initiated as a protest against discontinuation of a particular overtime payment, "which was not admissible".

“The company is losing money while continuing its operations at Assam for the last few years; one of the reasons being low production and high manpower,” it said.

It went on to state that the claim of the Union with respect to medical facilities being stopped was “factually incorrect”.

“The change from direct credit to reimbursement mode has been introduced to curb misuse and malpractice related to a unique welfare facility the company provides to its in-service as well as to its former employees,” it said.

Despite financial pressures linked to rising production costs in the Assam Asset, ONGC said it continues to maintain a significant presence in the region.

The company reiterated “its commitment to Assam through a wide range of Corporate Social Responsibility (CSR) initiatives. These include sustained investment in education, healthcare, infrastructure, and skill development. The Siu-Ka-Pha Hospital at Sivasagar is one such flagship project providing healthcare to the locals.” While the current changes may cause short-term friction, they are aimed at ensuring long-term sustainability for ONGC’s operations in Assam.

The situation remains stable, with dialogue channels open between management and employee representatives.