Rollback decision with PM: Naik

By Our Special Correspondent

NEW DELHI, OCT. 16. The Petroleum Minister, Mr. Ram Naik, today said a ``political'' decision on the tricky issue of rolling back the prices of petroleum products as demanded by the Trinamool Congress supremo and Railway Minister, Ms. Mamata Banerjee, would be taken only by the Prime Minister, Mr. Atal Behari Vajpayee, after his return from Mumbai where he is recovering from his knee surgery.

Addressing the Economic Editors Conference here, he said he had met the Prime Minister for 30 minutes yesterday and placed all the facts before him. He told the Prime Minister that all calculations would be ready to help him decide.

Asked whether he had suggested that the prices should not be rolled back, he said he had discussed issues relating to his Ministry with Mr. Vajpayee and apprised him of the facts.

Mr. Naik, who dealt at length on the background leading to the increase in the prices of petroleum products, said there was ``no proposal for immediate price increase with me''.

India was keeping in touch with OPEC and other countries and efforts were being made to persuade them to treat the developing nations on a different footing, particularly in view of the fact that such a sharp hike in crude oil prices affected them more.

The Minister said the prices would be reduced once the oil pool deficit was wiped out.

Listing steps being taken to raise the domestic production of petroleum products, he said three pilot projects would be set up in the sugarcane rich belts of Maharashtra and Uttar Pradesh for producing ethanol after consultations with the States. Besides, 25 blocks have been allotted for exploration purposes and more would be assigned in accordance with the policy formulated by the Government.

The marketing network for petroleum products was also being strengthened. The LPG waiting list of 1.10 crores was cleared in September much ahead of the December deadline. Those who registered between January and September in 11 States would be provided with LPG connections by the year-end.

The country had become self-sufficient with regard to its refining capacities and 41 million metric tons were added last year alone.

The disinvestment process in the oil sector, he said, was progressing in accordance with the Cabinet decision. Also the stand-alone refineries were sought to be restructured. However, ONGC, GAIL and IOC would remain the three flagship companies with the Government retaining 51 per cent equity.

Indian and foreign firms which invested or proposed to invest Rs. 2,000 crores would be entitled to enter the petroleum product market. There would be no discrimination between domestic and foreign players provided they meet the other basic criteria.

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Section  : National
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