ONGC falters despite Imperial deal

NEW DELHI, Dec. 30 (UPI) -- Energy production from the Indian Oil and Natural Gas Corp. is lagging woefully behind the rise in domestic consumption in a growing economy, analysts say.

ONGC production rose just 6.7 percent in the reporting period ending March 31 and cannot keep up with national growth, The Wall Street Journal said Tuesday.

A $1.92 billion deal to acquire the British Imperial Energy Corp., which holds considerable interest in Siberian oil fields, is expected to conclude Tuesday. But despite its increased international presence, the firm lost out on several lucrative deals with Kazakhstan and China, putting it at a distinct disadvantage among its competitors.

Industry observers blame government intervention on hampering ONGC development in the energy market, a sentiment also expressed by ONGC chief R.S. Sharma.

"As a government company, I would say we are over-regulated," he said. "We are taking a longer time in taking the decisions and implementing the decisions."