Date:03/12/2005 URL: http://www.thehindubusinessline.com/2005/12/03/stories/2005120303310900.htm

Back Oil cos seek review of new marketing discipline norms

Richa Mishra

New Delhi , Dec. 2

TROUBLED by the recent incident of the murder of a young Indian Oil Corporation sales officer, the marketing heads of the public sector oil marketing companies (OMCs) are pressing for the review of new Marketing Discipline Guidelines (MDGs).The new MDG holds the company official responsible if a retail outlet is found guilty of adulteration and diversion.

The OMCs are expected to meet the Petroleum Ministry officials to discuss the matter soon. While the new MDG provides for stringent action against the erring officers, it only provides for financial punishment against the defaulting dealers, an Indian Oil official said.

"This is not enough. There is a need to provide for more punitive action including immediate termination of such dealerships," the official added.

He said although the companies were taking measures to protect their staff, this was a larger issue needing Government intervention. There was an urgent need to check the thriving adulteration business, the official told Business Line.

Indian Oil has paid a compensation of Rs 30 lakh and a monthly pension of Rs 10,000 to the family of S. Manjunath, a 25-year old sales officer, who was allegedly murdered by a petrol pump owner in Uttar Pradesh.

The three provisions of the new MDG that has been troubling the OMCs include the chapters dealing with action against officers due to irregularities at retail outlets, action against officers due to irregularities at refinery supply points and depots, and irregularities at company owned and company operated retail outlets (COCOs).

The chapter for action against officers due to irregularities at retail outlets stipulates "action against officers/staff of the marketing wing shall lie only in those cases where any malpractice/irregularity has been detected during the course of inspection conducted by any wing/agency, apart from the marketing wing."

It also stipulates that disciplinary action as per conduct rules would be initiated against the officer/staff of the OMCs only where the malpractice/irregularity found at a retail outlet has resulted in the termination of dealership.

Further, the chapter dealing with action against officers due to irregularities at refinery supply points and depots, envisages that action would be taken against officers found guilty of releasing off-specification product from the refinery despatch points.

As regards to irregularity detected at (COCO) retail outlets, the new MDG stipulates that it would be the primary responsibility of the company staff to ensure dispensation of the correct quality and quantity of products from these outlets.

In the event of any irregularity detected at COCOs, whether permanent or temporary, either due to quality or quantity deficiencies or any other reason, the concerned officer and staff would be immediately placed under suspension pending domestic inquiry.