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Workers� body supports IOC stand on AOD

By Staff Reporter

GUWAHATI, June 5 � The North Eastern Region Oil Workers� Coordination Committee today refuted the report that the Assam Oil Division office is being shifted to Kolkata and added that the recent decision of the Indian Oil Corporation to merge the marketing code of IOC and AOD would not have any adverse impact on State.

Addressing mediapersons here, Biren Kalita, general secretary of NEROWCC today said the merger of codes have been done for administrating convenience and the identity of Assam Oil Division would remain intact. �It is not true that the West Bengal government would get the revenue or tenders would be floated in the neighbouring State due to this move,� he added.

However, raising concern that if the production capacities of the existing refineries of the State are not increased, it will be difficult for the refineries to survive in future, he said the existing refineries are incurring huge losses.

�In the last fiscal, the Guwahati refinery incurred a loss of Rs 57 crore, Bongaigaon Rs 887 crore, Digboi Refinery incurred a loss of approximately Rs 65 crore, and the marketing wing of the AOD had to face a loss of more than Rs 100 crore. In the present circumstance, if a refinery�s production capacity is less than six million metric ton, it won�t be a profitable venture,� he said.

At present, the Union government is providing 50 per cent excise rebate to the refineries, which, the organisation demanded, should be made 100 per cent for the refineries to survive. They also demanded the government to take steps for increasing the production capacity of the refineries.

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Workers� body supports IOC stand on AOD

GUWAHATI, June 5 � The North Eastern Region Oil Workers� Coordination Committee today refuted the report that the Assam Oil Division office is being shifted to Kolkata and added that the recent decision of the Indian Oil Corporation to merge the marketing code of IOC and AOD would not have any adverse impact on State.

Addressing mediapersons here, Biren Kalita, general secretary of NEROWCC today said the merger of codes have been done for administrating convenience and the identity of Assam Oil Division would remain intact. �It is not true that the West Bengal government would get the revenue or tenders would be floated in the neighbouring State due to this move,� he added.

However, raising concern that if the production capacities of the existing refineries of the State are not increased, it will be difficult for the refineries to survive in future, he said the existing refineries are incurring huge losses.

�In the last fiscal, the Guwahati refinery incurred a loss of Rs 57 crore, Bongaigaon Rs 887 crore, Digboi Refinery incurred a loss of approximately Rs 65 crore, and the marketing wing of the AOD had to face a loss of more than Rs 100 crore. In the present circumstance, if a refinery�s production capacity is less than six million metric ton, it won�t be a profitable venture,� he said.

At present, the Union government is providing 50 per cent excise rebate to the refineries, which, the organisation demanded, should be made 100 per cent for the refineries to survive. They also demanded the government to take steps for increasing the production capacity of the refineries.