IOCL Pipeline Unions Urge PM Modi to Halt Proposed Board Restructuring, Seek Immediate Appointment of Director (Pipelines)

Recognised unions representing employees of the Pipelines Division of Indian Oil Corporation Limited (IOCL) have appealed to Prime Minister Narendra Modi to intervene in the proposed restructuring of the company’s Board, expressing apprehensions that the move could weaken oversight of one of India’s most critical energy infrastructures. The unions have urged the Prime Minister to immediately appoint a Director (Pipelines), oppose the reported abolition of the post and reconsider the proposed restructuring measures affecting the Pipelines Division.

In a detailed representation dated July 10, 2026, addressed to the Prime Minister, the unions said IOCL’s Pipelines Division has been the backbone of India’s hydrocarbon transportation network for more than six decades. According to the letter, the division operates over 22,000 kilometres of petroleum pipelines and 7,000 kilometres of City Gas Distribution (CGD) pipelines, covering more than 12,500 villages across the country.

The employee representatives expressed concern that the post of Director (Pipelines) has remained vacant for several months despite the completion of the selection process and the availability of qualified candidates. They also referred to reports suggesting that the position may be abolished as part of the proposed restructuring of the IOCL Board, a move they described as detrimental to leadership, accountability and operational safety.

The unions argued that managing a vast network of hazardous petroleum pipelines without a dedicated functional director could adversely affect emergency response, preventive maintenance and overall safety. They warned that any lapse in supervision could increase the risk of accidents, explosions, fires and environmental disasters impacting millions of people residing along pipeline corridors.

The letter also raises objections to the proposed “Synergy System”, under which around 40 pipeline locations are proposed to be integrated with marketing functions, while the pipeline headquarters at Barauni and Mourigram (Kolkata) are reportedly proposed to be shifted to Durgapur. According to the unions, such restructuring would dilute specialised technical expertise, erode institutional knowledge and weaken established safety systems built over decades.

Questioning the rationale behind the restructuring, the unions pointed out that GAIL, which operates approximately 10,000 kilometres of pipelines, has a full-fledged Board with multiple functional directors, whereas IOCL manages more than 22,000 kilometres of petroleum pipelines but presently has no dedicated Director (Pipelines). They described the situation as an unjustified imbalance considering IOCL’s larger operational responsibilities.

The representation further stated that relocating the established pipeline headquarters would entail expenditure of public funds without corresponding operational benefits. It argued that Barauni’s headquarters is strategically linked to the refinery, while Mourigram is located close to Kolkata and already has well-developed infrastructure, employee housing and healthcare facilities. The proposed relocation, the unions claimed, would disrupt operations and adversely affect employee welfare and morale.

Another issue highlighted in the memorandum is the increasing outsourcing of perennial operational and maintenance activities. The unions expressed concern that core functions are gradually being entrusted to outsourced agencies instead of regular employees, resulting in declining permanent employment opportunities for skilled youth and continued vacancies in sanctioned posts.

In their appeal, the unions urged the Prime Minister to immediately appoint a Director (Pipelines) to restore leadership and accountability and to halt the implementation of the proposed restructuring measures, which they believe threaten the safety, efficiency and institutional strength of the Pipelines Division.

The representation has been jointly signed by office-bearers of recognised pipeline employee unions from various regions of the country, reflecting a coordinated nationwide appeal. Copies of the letter have also been sent to the Union Ministers for Petroleum & Natural Gas, Home Affairs, Defence, Finance, Railways, Labour & Employment, Housing & Urban Affairs, Health & Family Welfare and Food Processing Industries, among others.