ONGC under pressure to take over GSPC: U'khand govt

Accusing the Centre of mounting pressure on ONGC to take over loss-making Gujarat State Petroleum Corporation (GSPC), the Uttarakhand government today opposed the move saying it will reduce the country's leading oil and natural gas company to a loss-making undertaking.
"If the ONGC buckles under the pressure of the Centre and takes over GSPC which is under heavy debt burden and in the red, it will incur a loss of Rs 30,000 crore," Uttarakhand Chief Minister Harish Rawat's spokesperson Surendra Kumar said.
Citing CAG reports, he said GSPC has taken a loan of Rs 19,716 crore between 2011-2015 on which the accrued interest comes to Rs 1,804 crore.

He said ONGC will have to repay the loans taken by the debt ridden company besides spending huge sums on funding oil explorations and drilling on the latter's behalf.
Alleging that it would also be an injustice to Uttarakhand as the ONGC is located here and contributes significantly to the state's economy, Kumar said the move will be opposed tooth and nail by the state government.