Merger of Petroleum Companies
The idea of merger of petroleum companies is something that is not going to be beneficial in the long run. The reasons are:
1. When OMCs were incurring huge losses then no exploration company wanted to be merged with them, but now when the situation seems favourable for OMCs they want to be merged and they did not bear the entire subsidy either and the OMCs were bleeding badly.
2. By consolidating in such a manner we would be discouraging competition and efficiency among each other and in the process would be creating behemoths that would be difficult to run and they won't be able to compete internationally. If IOC, BPCL are entering into exploration then ONGC, OIL can diverse into marketing of Oil. This would lead to competition for market share and enhance efficiency. GAIL on the other hand has pipelines which has its own problems like political interference as we saw in case of kochi pipeline by tamil nadu govt. So by keeping the processes detached from one another actually risk is getting diversed.
These are early days for these OMCs which have just started to earn profits and they should not be burdened with Upstream companies problem at this point of time.
These cannot be emotional decisions and moreover these companies need to stand on their own and convert into huge companies only then will they be able to cater to India's interest through their efficiency and capability. They need to earn but surely they should not piggyback on each other to cover for their inefficiencies sometimes due to political reasons. We definitely need competition among companies which mean exploration companies venturing into areas which are lucrative right now like marketing, which will help consumers in getting a better price, and OMCs can diverse to exploration which they are already doing. This will be good for India. Political decisions should not interfere in these companies running, otherwise they wont make any money ever because one would be earning losses thereby negating the other's profit and thereby their investment capacity would decrease. By this process we would have many large companies who can form a consortium if need be for international projects. more
1. When OMCs were incurring huge losses then no exploration company wanted to be merged with them, but now when the situation seems favourable for OMCs they want to be merged and they did not bear the entire subsidy either and the OMCs were bleeding badly.
2. By consolidating in such a manner we would be discouraging competition and efficiency among each other and in the process would be creating behemoths that would be difficult to run and they won't be able to compete internationally. If IOC, BPCL are entering into exploration then ONGC, OIL can diverse into marketing of Oil. This would lead to competition for market share and enhance efficiency. GAIL on the other hand has pipelines which has its own problems like political interference as we saw in case of kochi pipeline by tamil nadu govt. So by keeping the processes detached from one another actually risk is getting diversed.
These are early days for these OMCs which have just started to earn profits and they should not be burdened with Upstream companies problem at this point of time.
These cannot be emotional decisions and moreover these companies need to stand on their own and convert into huge companies only then will they be able to cater to India's interest through their efficiency and capability. They need to earn but surely they should not piggyback on each other to cover for their inefficiencies sometimes due to political reasons. We definitely need competition among companies which mean exploration companies venturing into areas which are lucrative right now like marketing, which will help consumers in getting a better price, and OMCs can diverse to exploration which they are already doing. This will be good for India. Political decisions should not interfere in these companies running, otherwise they wont make any money ever because one would be earning losses thereby negating the other's profit and thereby their investment capacity would decrease. By this process we would have many large companies who can form a consortium if need be for international projects. more
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Corruption only Motivates Selfish Individuals and Fat salary is the Aim of 100% Employees in all Govt. & Private Sectors But who are the Key Chargers for all this Corruptions are our Inefficient Economic Structure only which was designed in reverse way not with equality and Equal rights an Idea of our Illiterate but Fatherly Leaders of India, more
Aug 02
The example of steel authority of Indian shows that after some initial hiccups it will stabilize and we can control losses. Leave it independent they make only losses .But the employees are very happy with fat salaries and no controls . more
Aug 01
Merger of Banks & Merger of Petroleum Companies like those of vital Economy Agents leads in one way to heavy / large effect and on other way lead to unsolvable status and is better if not opted in Democracy . more
Aug 01
the Upstream companies can have stake in these companies and earn dividend but they wont be making more money when oil is at $40 even if they are merged their operations wont yield profits by merging with OMCs more
Aug 01
