April 03, 2002

    Shri Ram Naik, Minister of Petroleum & Natural Gas inaugurated here today the Petroleum Planning & Analysis Cell (PPAC), one of the crucial organs of the Government for the post APM period. Speaking on the occasion, Shri Naik said that the Cell would play an important role particularly during the initial part of the new era in oil sector when the smooth switchover to de-regulated market is one of the main objectives of the Government. It would assist the Ministry of Petroleum & Natural Gas in discharging several important functions. These include administration of subsidy on PDS kerosene & domestic LPG and freight subsidy for far flung areas. He added that the Government would approve payment of subsidy to PSU oil marketing companies after the accounts have been certified by PPAC. The oil companies submit their claims every fortnight for processing and payments.

    The Minister informed that the Cell would maintain information data bank and communication systems to deal with emergencies and unforeseen situations. It would analyse the trends in the international oil market and domestic prices. The Cell would forecast and evaluate petroleum import and export trends and also operationalise the sector specific surcharge schemes, he added.

    The PPAC has an approved strength of 43 personnel and its expenditure would be funded by Oil Industry Development Board (OIDB). In the initial period between April-July, 2002 the Cell would continue to require the services of its current personnel which is about 140 for winding up the oil pool account. This would get reduced to about 70 by 31^st August, 2002 and to the approved strength of 43 by 31^st December, 2002. With this, the Oil Coordination Committee stands abolished.