GOVERNMENT DECIDES BROAD PRINCIPLES
FOR DEALER SELECTION BY OIL PSUs
PSUs
ASKED TO EVOLVE OBJECTIVE AND TRANSPARENT GUIDELINES
CONSULTATIVE
COMMITTEE ATTACHED TO PETROLEUM MINISTRY MEETS
Shri Ram Naik, Minister
of Petroleum & Natural Gas informed Members of Parliamentary
Consultative Committee attached to his Ministry that the Government
has communicated to the Oil Industry broad principles within which
guidelines are to be framed for selection of dealership/distributorship
by them. Announcing these principles, Shri Naik said that the
selections will be made by a Committee of 3 officers from the
Oil Company which is establishing the retail outlet/LPG distributorship.
He added that reservation will continue as in the previous guidelines
for all existing categories to the same extent. Shri Naik was
addressing the Consultative Committee meeting held here late last
evening.
Shri Ram Naik further
informed the Members that the corpus fund scheme would also continue
in its present form whereby the company provides financial assistance
to dealers from weaker sections like SCs/STs. As an improvement
in the selection process there will be no ceiling on income of
the prospective allottee vis-à-vis earlier ceiling on family
income of Rs. 2 lakh per annum. Similarly, in respect of the multiple
dealership norms will be relaxed so that only one dealership/distributorship
is allotted to an individual, his/her spouse and unmarried children.
Shri Naik informed that each oil company would frame its own guidelines
with the approval of its Board of Directors within these broad
principles giving priority for capability to provide and land
infrastructural facilities, educational qualifications, capability
to provide finance, etc. Elaborating further Shri Naik announced
that the Oil PSUs will start implementing the new guidelines from
about middle of September 2003. In the meanwhile, Oil Companies
would draw up the details by the end of August 2003 so that maximum
transparency and objectivity is practised in the selection process
by minimising the aspects of subjectivity.
The Minister also
announced that the oil companies have been asked to immediately
start the process of selection of dealerships already advertised.
There are about 800 retail outlet dealerships and about 1,000
LPG distributorships for which advertisements had released as
on 9.5.2002 but the selection process could not be carried out
following dissolution of Dealer Selection Boards as part of the
process of deregulation ushered in oil sector.
Speaking about the
agenda of the meeting "Scenario of Natural Gas & LNG
and its Transportation Infrastructure", Shri Naik informed
that GAIL has conceptualised a National Gas Grid project linking
various gas sources and potential markets through inter-state
high pressure gas pipeline network. This project would help in
optimal and efficient utilisation of gas within various parts
of the country. The first phase of National Gas Grid would involve
construction of 6,500-7,000 km. of cross-country pipelines. Based
on the preliminary estimates, the National Gas Grid is expected
to involve an investment of Rs. 16,000 crore to Rs. 18,000 crore
over the next 5-7 years. Shri Naik also informed that the availability
of gas along the HBJ pipeline would get considerably augmented
soon as the 5 million tonne per annum LNG import terminal at Dahej
is scheduled for completion by December 2003. The project has
achieved 85 per cent progress now. GAIL is laying gas pipeline
from Dahej to Bijaipur at a cost of Rs. 2,900 crore and from Dahej
to Uran, near Mumbai, at a cost of Rs. 1,400 crore for distribution
of re-gasified LNG. Shri Naik also elaborated several other initiatives
being undertaken in the oil sector including efforts to enhance
domestic oil and gas production, CBM production, etc.
Shri Naik also referred
to the unfortunate accident on 11th August involving
crash of a helicopter hired by ONGC near Mumbai High. The members
complemented Shri Naik for immediately visiting Mumbai and for
announcing the compensation to the family of each deceased. A
two-minute silence was observed in memory of those who lost their
lives in the helicopter crash. Welcoming the two inquiries ordered
by the Government, Members called for measures which will check
recurrence of such mishaps. They also suggested that ONGC should
have its own helicopters since the company has a big off-shore
exploration programme.
Smt. Sumitra Mahajan,
Minister of State for Petroleum & Natural Gas, also attended
the meeting along with Petroleum Secretary Shri B.K. Chaturvedi
and Additional Secretary Shri M.S. Srinivasan. CMDs of Oil PSUs
and other senior officers of the Ministry and oil PSUs were also
present. Following Members of the Consultative Committee attended
the meeting :
S/Shri Lal Bihari
Tiwari, Dr. Laxminarayan Pandey Manibhai, R. Chaudhari, Prof.
Rasa Singh Rawat, Shrichand Kriplani, Ram Shakal, Ram Singh Kaswan,
N.H. Diwathe, Kishan Singh Sangwan, Col. D.R. Shandil, M.H. Gavit,
Jai Prakash, Dr. Sushil Kumar Indora, Lakshman Seth, Ram Sajiwan,
Ram Jeevan Singh, Shibu Soren, Shyam Bihari Mishra and Harpal
Singh Sathi (All from Lok Sabha) and Prof. Ram Bakhsh Singh Verma,
Prof. Ram Deo Bhandari, A. Vijaya Raghavan, Satish Pradhan, Rajubhai
A. Parmar, Prof. M.M. Agarwal, and Lajpat Rai (All from Rajya
Sabha).
