Condemning moves by the government to privatise the country's only Fortune 500 company, Indian Oil Corporation, its employees unions on Wednesday threatened to go on an indefinite strike until the issue was resolved, but ruled out seeking judicial intervention on the matter.

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"We will take up agitation and call indefinite strike until the government mended its ways," E Haque, president, Indian Oil Officers Association, said at a press conference in New Delhi.

"We are trying to persuade the government to give up the ill-conceived idea of privatising IOC which has tremendous historic and strategic significance," Haque said.

Denying that the joint forum of IOC officers and workmen was contemplating moving court on the matter, C M Singh, general secretary, All India Petroleum Workmen Federation, said, "We would prefer the people's court as this government has scant regard for the judiciary as seen in the HPCL-BPCL case where it is working on circumventing the Supreme Court order."

Former MP and AIPWF vice president Shatrughan Prasad Singh said IOC was serving in the remotest areas of the country including Leh where it is the only firm to have a bottling plant.

"MNCs and private companies would not be interested in the kind of national service IOC has been doing," he said.

Haque, who led the joint forum delegation to the Petroleum Minister Ram Naik, said the latter appeared favourably disposed towards the matter and assured to take the matter before the Cabinet.

Haque said despite the government going all out for deregulating and decontrolling the sector, no retail outlet or depot has come up in the country. He alleged that the MNCs were trying to capture PSU assets at a very cheap rate.

The government is trying to split IOC for divestment in the most "cavalier fashion but we will try peaceful means before calling indefinite strike tentatively in the third or fourth week of November," T S Rangarajan, general secretary, Indian Oil Employees Union, Chennai, said.

He said: "During the wars with Pakistan and China, the multinational companies had refused to supply fuel. The IOC was formed under this historic necessity and our value was understood as recently as in the Kargil war."

IOC, which began with an investment of Rs 82 crore (Rs 820 million) has created an asset of Rs 100,000 crore (Rs 1,000 billion) and paid cumulative taxes of Rs 5,995 crore (Rs 59.95 billion) till now, Haque said, adding the company paid Rs 33,000 crore (Rs 330 billion) as taxes and duties to the national exchequer in the fiscal 2002-03, accounting for 14 per cent of the government's total tax collections.

The Assam Oil Company was merged with Indian Oil through an Act of Parliament in 1981; therefore any divestment of the petro giant can only be done with the approval of Parliament, Haque asserted.

Rangarajan said there were conflicting reports emanating from the government over the issue of privatisation, creating confusion in people's minds particularly the 32,000 strong IOC workforce.