In what may snowball into a major controversy, Planning Commission?s deputy chairman Montek Singh Ahluwalia has questioned the claims made by the petroleum minister Murli Deora on behalf of the two Fortune 500 companies?ONGC and Indian Oil?that the technologies used by them are the latest and best available in the world and don?t need any external audit.
Unhappy with Deora?s predictably casual way of looking at the issue, Montek wrote back to Deora (on October 6) in his rather polite, yet firm style and said, ?Dear Murlibhai, allow me to say that I am not convinced. However, in a world of rapidly changing technology, it is only normal practice to submit management decisions to some type of external assessment.?
Deora, had in his letter (of September 25), told Montek that the navratana oil PSUs have up-to-date technologies and his (Montek?s) suggestion that the boards of the major energy navratanas may consider the appointment of an independent consultant to give an assessment of the state of technology in each organisation was not considered necessary.
A presumably upset Montek further told Deora, ?Your letter conveys the response of the IOC and ONGC managements and I note that both have indicated that they are fully confident that they have up-to-date technology, and there is no need for an independent study. I accept that the managements are sincerely convinced that the technology strategies, they are following, are appropriate and indeed they must be so convinced, since otherwise they would do something different.?
The most operative paragraph in Montek?s letter to Deora reads, ?What you have received is a response from the management and not the board. I would respectfully suggest that the government director on the Board of these companies be directed to have my suggestion placed on the agenda of the Board and let us then see what the boards actually thinks. The managements of the boards are of course free to persuade the boards that the suggestions I have made need not be acted upon.?
The last remark of Montek?s letter questions a statement made by the ONGC, Montek said, ?Incidentally, I am somewhat puzzled by a claim made by ONGC. It is stated that ONGC has been making strong strides over the years to become ?self reliant in technology? for efficient exploration and exploitation of hydrocarbons. I am not sure what ?self reliance? means in the context of a corporation. Does it simply mean that they think they have all the technology, whether internally generated or from outside, or does it mean that they depend on internally developed technologies??
?The latter would surely be an unwise approach. I would appreciate a clarification on this point,? said Montek while ending his letter.