Oil PSUs divestment not

Naik said the Government intends to follow the recommendations of the Hydrocarbon Vision 2025, scripted by a five-member group of ministers. The report had stated that the stand-alone refineries should be either merged with marketing companies, such as the Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, or made their subsidiaries.

On whether the Government was considering according a strategic sector status to oil PSUs on par with the railways and defence, the minister said a view on this was yet to be taken.

The Hydrocarbon Vision 2025, finalised under the chairmanship of finance minister Yashwant Sinha, is yet to be sent to the Cabinet for approval. quot;We did not consider it necessary to send it to the Cabinet for approval.quot;

On the Government8217;s short-term plans to deal with the excess availability of certain petroleum products, like diesel and petrol, Naik said the Government was examining the avenues to export the two products. The situation was not alarming, and did not warrant a panic reaction, he added. The ministry expected demand for the products to pick up with the onset of the monsoon.

Petroleum secretary S Narayan said the Government had not earmarked any quantity for exports, and the situation could be controlled with good inventory management.

Meanwhile, the petroleum ministry, in a bid to curb adulteration of transport fuels with cheaper products, has notified two control orders under the Essential Commodities Act, 1955.

The Naphtha acquisition, sale, storage and prevention of use in automobile Order, 2000, and the Solvent, raffinate, slop acquisition, sale, storage and prevention of use in automobile Order, 2000, seek to bring in punitive measures for any misue of naphtha and solvents for the purpose of adulterating petrol and diesel.

Violation of the orders will attract improsionment of at least three years and fine for the first offence, and forfeiture of property and vehicles. For every second and subsequent offence, the punishment will be doubled.

The orders require every person who is engaged in sale/trading, or solvents or equivalent products, whether imported or indigenous, to file a certificate of end use from the consumer to whom he sells the item.

The orders have also empowered the functionaries of the oil companies and the state government to search the premises/vehicles, and check the use of these products, as well as inspect the documents.

The trade and use of naphtha and solvents will be subject to a licence granted by the district magistrate, state government, civil supplies authorities, or any person authorised by Central/state government.