GUWAHATI, September 4: Oil India Limited has been made to suffer heavy losses due to the failure of the Assam government to take necessary steps for the protection of the people of Khagorijan area of Dibrugarh district from floods and erosion. Oil India sources here said that the oil company struck oil in Khagorijan in 1997 and since then three oil wells are producing about 200 kilolitres of oil per day from that place. Oil India sources said it took steps for the all-round development of the area and steps have also been initiated for a thorough geological survey in the area. The area has long been neglected by the government and the people of the area are suffering from the problems of floods and erosion because of the failure of the state government to take necessary steps in this regard. After failure to persuade the government to take concrete steps for the protection of the area from floods and erosion, the people of the locality finally decided to hold the Oil India to ransom and from August 16 the local people prevented oil exploration works in the three oil wells in the Khagorijan area. The Oil India has to suffer heavy losses due to the drastic action by the people of Khagorijan area.