NSCN(K) sends extortion letter to ONGC | india | Hindustan Times
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NSCN(K) sends extortion letter to ONGC

The Khaplang faction of NSCN has served a 15-day ultimatum to pay an amount of Rs 3 crore or wind up operations.

india Updated: May 14, 2006 17:49 IST

The Khaplang faction of the NSCN has served a 15-day ultimatum to the ONGC to pay an extortion amount of Rs 3 crore or wind up operation from Nagaland's Mon district.

ONGC sources confirmed from Sivsagar, the receipt of the extortion letter. The authorities also informed both the Centre and the state and sought more security for their installations.

The extortion note was received by the ONGC regional headquarters on May 8. It was signed by 'Lt Col' Angpa, Secretary, Konyak Region. The extortion demand came within days of ONGC getting Petroleum Exploration License(PEL) from the state government for two blocks the company had won under, the New Exploration Licensing Policy(NELP).

At the moment, ONGC has five well sites in Mon district, which have been facing problem of extortion from both organised and unorganised sectors. The extortion note stated that the NSCN could begin work only after 'fulfilment of our demand'.

ONGC, which had in January received an extortion demand of Rs 500 crore from ULFA, had already informed the Petroleum Ministry about the latest threat.

It has already paid a royalty of Rs 33.83 crores against crude oil extracted from Changpang field in Nagaland. However, as a goodwill gesture, the company would further pay one time goodwill grant of Rs 67 lakhs to Nagaland.

It has also proposed to pay a special grant (add-on-royalty) at the rate of two per cent over and above the applicable rate of royalty to be paid to the Nagaland government on the crude oil produced from the state.

Despite offering jobs to local, the ONGC had not been able to cut a deal with the Nagaland government and now insurgents had served the extortion note shocking most of the executives.