New Delhi, July 11
A high-level committee on oil PSU headed by Dr V. Krishnamurthy has rejected the Petroleum Ministry’s proposal to merge state-run oil firms. The Committee instead recommended a national shareholding trust, modelled after the Singapore and Malaysian model, to hold government stake in them.
“The oil PSUs which will join the trust will continue to retain the PSU character and the trust will function as non-profit trust set up under the Societies Registration Act or under the Companies Act,” the six-member committee recommended.
Petroleum Minister Mani Shankar Aiyar had constituted the committee with the idea of minimising overlapping of interests and curtailing destructive competition. The idea was to merge smaller companies like BPCL, HPCL in ONGC and OIL in IOC to create two behemoths capable of facing international competition.
The committee suggested the need for an integrated energy policy, setting up of Cabinet Committee on Energy under the Prime Minister and setting up of energy ministry.
The committee, which submitted its report to the Petroleum Minister today also recommended revamping the existing framework of supervision and overview by agencies like the C&AG, CVC and the CBI by setting up pre-investigation board with former PSUs chiefs, government and private sector representatives.
It had also suggested empowering Directorate General of Hydrocarbons (DGH) as an autonomous body with a separate cadre of experts and access to funds.
