Industry sources say the scheme has been worked out to the satisfaction of both the ONGC and its workforce who have opted for it. The retiring personnel would get a lumpsum payment in the form of basic pay and dearness allowance payable till they are 60. The corporation, in its turn, will have to fork out Rs 58 crore for the retirement benefits, a substantial saving considering the fact that if these employees had stayed on, the corporation had to bear a cost of Rs 120 crore. The higher figure (Rs 120 crore) can be attributed to additional payment in the form of various allowances like drilling, productivity, house rent as also conveyance and leave travelallowance. To the staff opting for premature retirement, they not only get a handsome cheque but can also seek alternative employment in private organisations, as is the recent trend, if they choose to.

"The response has been overwhelming and the employees believe that this is the best thing that could have happened," sources said. All of them have also accepted the idea that it makes sense to step down at a time when many youngsters need to be groomed for more responsible positions in the future.The other need for change stems from the fact that international consultant McKinsey is in the process of preparing a restructuring proposal for ONGC which could lead to the creation of separate profit centres for specialised fields of activity.