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Journalism of Courage
The selection of dealers for petrol pumps and cooking gas agencies continues to be subjective. This continues to provide the petroleum ministry 8212; read the minister 8212; with supreme control over who should get the dealership.
Days before interviews are held for the selection of these dealers, telephone calls are made to the heads of the state-run oil marketing companies OMCs indicating the minister8217;s preference. This was being done during the regime of the NDA government. It is still being done now.
The modus operandi was this: the then Petroleum Minister Ram Naik would be approached by the state chiefs of the BJP and its allies; and Naik would coerce the DSB chairmen, each a retired high court judge, with a veto power of 200 marks, into systematically doling out largesse to kith and kin of party functionaries.
After the Standing Committee voiced its complaint, the government decided to provide 8220;commercial freedom8221; to the public sector oil marketing companies under the garb of dismantling the administered pricing mechanism in the petroleum sector. 8220;Government has no role in the selection/allotment of dealerships/distributorships under the above system,8221; it said. A point system, with maximum marks of 100, was put in place by the OMCs which is distributed on the basis of a candidate8217;s age, education, experience and money power etc.
If that system did not root out the corruption, the present selection procedure is not foolproof either. This is best depicted by the hectic jostling outside the petroleum minister8217;s office over the last four years it has been in operation.
First of all, the guidelines provide for a three-member committee comprising officials of the concerned company. It does not specify the ranks of these officers and is usually manned by deputy general managers and below. This provides the senior officials the clout to pressurise these officials to select their candidates.
And where is the window to use the pressure? As the marking system is posted on the web, aspirants have to ensure that they maximise their eligibility on land and infrastructure, finance, educational qualification, age and experience where the marks are fixed.
For example, those with their own land and willing to give it to the company for 15 years would get 35 points while those with a 8220;firm offer8221; of land would get 25 points. Similarly, a candidate with ready cash gets 12 points while the one with financial capability in the form of immovable assets gets 4. Post graduates get 12 while matriculates get 7. Those between 26 and 46 years are entitled to 4 points while those above or below this band get 2.
The evaluation sheet provides the committee discretion over 12 per cent of the marks under the heads 8212; Capability to generate business, Business ability/acumen and Personality. The panel has to decide these marks using 8220;leading questions8221; to the interviewee.
Even though the list of marks scored by each probable is displayed at the interview centre, the candidates have no way of countering the marks awarded under these heads as no certificate is required to be furnished. Each candidate8217;s project report too is carried back by him and is verified subsequently by the company officials. The norms also do not specify the time frame within which the company has to announce the results, thus providing time for power play.
The rush for public sector companies8217; pumps is unabated as private retailers demand Rs 25 lakh or less as deposit for giving dealerships whereas the demand from OMCs is Rs 5 lakh or nil depending on whether it fell under Open or Reserved category. Moreover, with private companies like Reliance and Essar pricing their fuel closer to their cost while the OMCs are pricing it lower on government diktat, auto fuels are about Rs 2 per litre cheaper at the latter8217;s pumps. That has resulted in poor sales at private companies8217; outlets, and not many takers for their outlets.
As for LPG agencies, the queue is never-ending as the private players, operating purely on economic considerations, cannot compete with the subsidised prices. Moreover, private companies producing LPG at their refineries are not allowed to retail LPG to individuals.
