Financial Daily from THE HINDU group of publications
Saturday, Aug 27, 2005
Industry & Economy
Advisory panel to suggest integration of oil PSUs: Aiyar
New Delhi , Aug 26
CLOSE on the heels of the high-level Committee on Synergy in Energy submitting its report, the Minister for Petroleum & Natural Gas, Mr Mani Shankar Aiyar, has announced that an advisory committee would suggest integration and restructuring of public sector oil companies would be constituted.
Official sources said that Mr Aiyar disclosed this at the meeting of the Parliamentary Consultative Committee attached to his Ministry on Thursday evening. He, however, did not divulge who would head the committee and who would be its members.
Mr Aiyar said that the Prime Minister, Dr Manmohan Singh, has given his clearance for setting up a Standing Advisory Committee to examine the issue of integrating the oil companies along the hydrocarbon chain. The Minister said that the report of the Krishnamurthy Committee on Synergy in Energy would be the starting point for the Advisory Committee.
It may be recalled that the Krishnamurthy Committee was constituted to suggest consolidation of oil PSUs, possibly into one or two mega entities. However, the Committee ruled out such a merger. Sources indicated that the Petroleum Minister wants this idea to be revisited. Responding to concerns expressed by the Consultative Committee members on the impact of spiralling international crude oil, the Minister said that the total net losses reported by the four oil marketing public sector companies - IOC, HPCL, BPCL and IBP has touched Rs 1,227 crore during the first quarter of 2005-06.
Price of Indian basket has increased to $62.11 per barrel as on August 12 from an average monthly price of $32.37 per barrel in April 2004.
Speaking at the meeting on the `Future of Refining in India', Mr Aiyar said that the oil sector was emerging as a significant exporter of refined products, clocking Rs 28,000 crore during 2004-05. The expenditure on import of crude oil stood at Rs 1,17, 000 crore.
The Indian companies should focus more on setting up export oriented refinery projects, which would give them better refining margins, the Minister said. In a presentation made by the Petroleum Ministry, the Consultative Committee was informed that the average gross refinery margins were $3.9 per barrel in India as against $8.05 per barrel in Singapore.
Also, the Asian and European markets were emerging as export targets for Indian refiners.
The Committee was also informed that the oil refining capacity is estimated to increase to 153.7 million metric tonnes per annum by 2006-07 from the current level of 127.37 MMTPA.
He said an investment of Rs 63,348 crore would be made by oil PSUs up to 2010 on producing green fuel.
An amount of Rs 25,000 crore is being invested in Euro II/Euro III fuel projects for supply of Euro III fuel in 11 major cities and Euro II in rest of the country from April 1, 2005. Euro II diesel would be introduced by October 2005.
Another Rs 14,400 crore would be invested in budgets for producing Euro IV fuel for supplying in 11 major cities and Euro III equivalent in rest of the country from April 2010, he said.
Talking about the Mumbai High North platform fire, the Minister said that ONGC has completed the process of paying compensation and jobs have been offered to the next of kin of those confirmed dead or those presumed dead in the accident.
Stories in this Section
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line