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UPSC Dictionary

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The Armed Forces Special Powers Act (AFSPA) grants special powers to the military in 'disturbed areas' and remains controversial in the Northeast and J&K.

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UPSC Dictionary

Oil and Natural Gas Corporation

The Oil and Natural Gas Corporation Limited (ONGC) is an Indian central public sector undertaking (PSU) and the country's largest government-owned oil and gas explorer and producer. It was founded on August 14, 1956, by the Government of India, initially as the Oil and Natural Gas Directorate. The primary problem it was created to solve was India's heavy reliance on imported energy sources, with the objective of developing an indigenous, self-reliant hydrocarbon exploration and production sector. The Directorate was raised to the status of a Commission in August 1956, and then converted into a statutory body by the Oil and Natural Gas Commission Act, 1959.

The mechanism of ONGC's operation is centered on the exploration and production (E&P) of crude oil and natural gas across India's 26 sedimentary basins. Its functions, as outlined in the repealed Oil and Natural Gas Commission Act, 1959, were generally to plan, promote, organize, and implement programs for the development of petroleum resources and the production and sale of petroleum and petroleum products. ONGC accounts for approximately 70% of India's domestic crude oil production and around 84% of its natural gas production. It is administered by the Government of India's Ministry of Petroleum and Natural Gas.

A significant change occurred in February 1994, when the statutory body was reorganized as a limited company, the Oil and Natural Gas Corporation Limited, under the Companies Act, 1956, following the economic liberalization policies of July 1991. This transition was formalized by The Oil and Natural Gas Commission (Transfer of Undertaking and Repeal) Act, 1993, which repealed the Oil and Natural Gas Commission Act, 1959. ONGC connects to several related institutions, including its international arm, ONGC Videsh Limited (OVL), which handles its overseas projects in countries like Vietnam and Australia, and its subsidiary refinery, Mangalore Refinery and Petrochemicals Limited (MRPL). In November 2010, the Government of India conferred the prestigious Maharatna status upon ONGC.

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