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Thursday,
August 8, 2002, Chandigarh, India  
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Oil companies file
caveats New Delhi, August 7 The Federation of All-India Petroleum Traders said it would have to take legal recourse if allotments to genuine candidates were cancelled. The federation also sought a meeting with the Prime Minister, Mr Atal Behari Vajpayee, to urge him to review the decision. “The government decision to summarily cancel all allotments has created confusion among the dealers as there exists no clear-cut guideline for cancellation,” a spokesman of the federation said. The federation also opposed the government announcement of auctioning of the cancelled petrol stations and gas agencies, saying “it would bring only the rich and corrupt on the table.” Petroleum Ministry sources said once the retail outlets were given out on the basis of competitive bidding, there would only be commercial considerations. They said the ministry would have to change the existing allotment guidelines to make the changeover in the system. The ministry was working overtime to finalise the new guidelines as their thrust would be different from the existing ones, which prohibited any person whose annual income was more than Rs 2 lakh from applying for a dealership and allow only one outlet of any product to one family. On Monday, the government cancelled allotments of 1,134 retail petrol outlets, 1,688 LPG agencies and 236 kerosene dealerships, made after January, 2000. Meanwhile, both Houses of Parliament were adjourned for the day for the fourth successive day today over opposition demands for the resignation of Petroleum Minister Ram Naik and a CBI probe. BJP MPs as well as affected members decided to hand over a Appreciating Mr Vajpayee’s decision as “bold and courageous’’, more than 50 MPs said all dealers had been appointed through the board, headed by a retired Judge, and there was nothing to indicate any influence by political workers. “The decision will lead to severe financial hardship and loss of business for many innocent persons, who have been selected by duly constituted boards in a fair manner,’’ the petition said. |
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Govt to seek legal advice New Delhi, August 7 The Ministry of Petroleum and Natural Gas is approaching the Law Ministry. The first and foremost problem before the ministry is how to put these agencies under competitive bidding without legal wrangles as the allotments, which now stand cancelled, were made under the category of “self-employment” to those whose family income is below Rs 2 lakh per annum. “The legal problem is that if the government goes for open bidding then those people with less than Rs 2 lakh would automatically be eliminated as they can’t afford to compete in open bidding,” a source in the ministry said. Secondly, the government will also have to decide whether the process should be through sealed tender or open auction and whether corporate bidding will be allowed. Another problem in the bidding system could open up the possibility of persons, who already have such agencies, managing to acquire more agencies. However, the biggest problem is the cancellation of allotments to persons in the reserved category.  |
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