AGARTALA, Oct 24 (TIWN): Cash reserves of the oil and gas explorer ONGC fell by 92% in a single year from FY 2016-17 to FY 2017-18 under Modi Govt and when in Northeast ONGC undertook business amid high risks and geographical backwardness, BJP Govt has aimed to taxing ONGC with 100 crores. Under Modi Govt debt-free ONGC is now bearing heavy debts spiked tension of fall of country's leading industry.

The government had again been asking ONGC to bear the fuel subsidy this time to bring down petrol prices, but the company resisted and was exempted — given its dire financial situation, with ONGC chairman Shashi Shanker admitting in June this year that the company was “already in the red.”

The pressure upon ONGC is much visible from Tripura background. Due to geographical location and lack infrastructure and other issues, it has been much tough to get industrialist for Tripura and other Northeast states even though with both side's initiative big shopping zones with chained hypermarkets, ONGC, NEEPCO etc started business in Tripura but when central Cabinet cut tax burden on ONGC, Oil on July, 2018 for Northeast due to geographical backwardness, Tripura CM Biplab Deb has aimed to take 100 crores taxes from ONGC.

The situation is allegedly same with all sections. The quitting of various flights have also questioned on Tripura Govt failure to invite more numbers of flights in state.

CM also challenged that he will manage 100 crores tax from OTPC. "I will do it, may be delay for 6 months", CM said during Durga Puja celebration in Melaghar.

Biplab Deb further claimed that he also rebuked the Petroleum Minister at Centre Dharmendra Pradhan  for freeing ONGC from taxation.

"14.5 VAT was freed for ONGC under the MoU signed between Sate Govt and ONGC, whereas the tax could profit Tripura with 80 crores to 100 crores of taxes. When the file came to me, I found such a huge profit ONGC is making but without VAT. I rushed to the Petroleum Minister Dharmendra Pradhan but he said same is applicable to all states. I told him, it's not correct. ONGC will enjoy the benefit and my state will not get anything, it's not accepted. It may delay for 6 months but ONGC has to give taxes, if necessary amendments will be brought on that", CM said.

 "But the way I spoke to Petrolatum Minister the previous CM Manik Sarkar could not say like that", CM said by comparing him with Manik Sarkar.

ONGC Tripura Power Company also known as Palatana Power Plant, is a thermal power plant station in Palatana, Udaipur in the Gomoti District of Tripura. It is ONGC's first power plant in India & also known as the biggest Plant in Northeast India. ONGC is widely connected with social service across Tripura. 

ONGC and other state-owned oil companies, such as Oil India Limited (OIL), have been regularly asked to share the fuel subsidy burden, with the government refusing to pay the entire subsidy. So, ONGC had to pay for fuel subsidy — selling oil to refiners at a discount —  as oil prices soared. This obviously cut into the profitability of the company.

In 2014, the public sector explorer was asked to pay a record subsidy of Rs. 56,384 crore (Rs 563.84 billion), an increase of 14% from the subsidy paid the previous fiscal, so that state-owned fuel retailers could cover the losses incurred in 2013-14.

For just the quarter ended December 31, 2014, the company was asked to pay Rs 8,716 crore. In June 2015, ONGC and OIL had both made contributions of over 40% of the annual subsidy bill.