ONGC to pay Rs 242 cr to Mumbai Port Trust

New Delhi: Oil and Natural Gas Corporation has been ordered to pay about Rs 242 crore to the Mumbai Port Trust as wharfage compensation for the transportation of crude oil through the two pipelines the company had laid within the limits of the state-run port.

In a regulatory filing, state-owned ONGC said it is examining the admissibility of the claim. The Tariff Authority for Major Ports (TAMP) passed an order for wharfage compensation payable by ONGC on October 3, 2018. TAMP order stated that "ONGC shall pay to MbPT a compensation at one half of wharfage rate as applicable on the per tonne of crude oil which will be imported into the port of Mumbai through all or any of the ONGC pipelines."

As per the order, "a sum of Rs 173.69 crore has to be paid to MbPT by ONGC in lieu of wharfage compensation charges since 2013-14," the company said.