Date:12/04/2006 URL: http://www.thehindubusinessline.com/2006/04/12/stories/2006041202790500.htm

Back Petroleum regulator to be in place by September

Our Bureau

Deora to meet Chidambaram to discuss Rangarajan Committee report

New Delhi , April 11

With President Dr A.P.J. Abdul Kalam giving his approval to the Petroleum and Natural Gas Regulatory Board Bill, 2006, the Petroleum and Natural Gas Board is likely to be established by September this year. Mr Murli Deora, Minister for Petroleum and Natural Gas, told presspersons here on Tuesday that having received the Presidential assent, the rules and regulations would be notified soon and the search panel for selection of candidates for the board formulated.

"In the next four-five months the regulatory body for the petroleum and gas sector should be functional," the Minister added. The downstream regulator would have the task of monitoring petroleum and gas activities right from refining, processing, storage, transportation, distribution, marketing and sale with the aim of ensuring transparency and fair play in the market while protecting the interests of consumers.

Further, the establishment of the regulator is expected to ensure uninterrupted and adequate supply of petroleum, petroleum products and natural gas in all parts of the country and to promote competitive markets. The establishment of the Board for the petroleum and gas sectors has generated greater confidence among global energy majors about the investment potential of India, the Minister said.

Regarding the decision on the Rangarajan Committee report on ways to tackle the issue of subsidy being offered on petroleum products and minimising adverse impact on oil marketing companies (OMCs), Mr Deora said that he hopes to meet the Finance Minister, Mr P. Chidambaram, next week to discuss the report. At the meeting issues of fiscal incentives for the exploration companies is also likely to be taken up. The exploration companies have been seeking service tax exemption on their activities. The Finance Ministry had sought a list of services that the companies in the sector are offering and those that could be exempted. The Petroleum Ministry has provided the list to the Finance Ministry, he said.

The meeting would also be a follow up to an earlier meeting both the Ministers had held with the Prime Minister, Dr Manmohan Singh, on the expert committee report to formulate a mechanism for moderate increases in petrol and diesel prices, while protecting the health of oil companies and Government revenues in view of the continuing rise in global oil prices. "By mid-May, we hope to take some decision on the Rangaranjan Committee recommendations," Petroleum Secretary, Mr M.S. Srinivasan, said.