MPs oppose split, privatisation of energy major

Tuesday, 14 October 2003, 19:30 IST
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NEW DELHI: Indian parliamentarians Monday opposed the split or sale of state-owned refining and marketing major Indian Oil Corporation (IndianOil). "Several members of the (consultative) committee (of Parliament attached to the petroleum ministry) have opposed the split and privatisation of IndianOil," Petroleum Minister Ram Naik told newsmen here after the meeting. "The members have also expressed the view that the government should honour the Supreme Court view not to move ahead with the disinvestments of Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) without seeking Parliament approval," Naik said. The highest court had last month stalled the federal government move to proceed with disinvestment of part of its stake in the two oil PSUs on the ground that it should first seek parliament approval, having been constituted under a special legislation. The federal cabinet has set up a committee to review and report within three months the options before it, including possible disinvestment of any of the other oil companies. The consultative committee members have, however, voiced concern about privatising any oil company deeming it as a strategic sector with India dependent on imports for 70 percent of its needs. In addition, through indirect control the government is still keeping a check on the retail price of petroleum products despite the increasing global prices. In IndianOil's case, the MPs were not keen to split the only Fortune 500 listed Indian company, Naik said.
Source: IANS
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