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New Delhi , Oct. 6

WITH the minutes of the meeting of the Cabinet Committee on Disinvestment (CCD) last week on the splitting of IOC still awaited, the Petroleum Minister, Mr Ram Naik, on Monday said that "no decision has been taken" on IOC disinvestment.

Following the CCD meeting, the Disinvestment Minister, Mr Arun Shourie, had said that one of the options being pursued was the restructuring of IOC in a manner that certain "strategic" portions or divisions of the corporation would be merged with HPCL and BPCL.

The remaining part would be divided and sold, one to a strategic investor and the other to the public.

This option was mooted in the wake of the Supreme Court insisting on the Centre seeking Parliamentary approval before going ahead with the sale of HPCL and BPCL.

Mr Naik, however, refused to get drawn into questions relating to Mr Shourie's proposal on the splitting of IOC in that manner.

Cabinet okays auto fuel policy

He had convened the press meet essentially to announce the phased programme of introduction of the Euro IV vehicular emission programme in the country by 2010.

``The Cabinet has approved an Auto Fuel Policy that lays a roadmap for implementing Euro-II, III and IV vehicular emission standards by 2010.''

The programme, approved by the Union Cabinet last Friday, entails an investment of Rs 55,000 crore by oil and automobile companies.

The Bharat Stage II norms (equivalent to Euro-II norms), which are currently in place in 11 cities - Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur and Agra - will be applicable to all automobiles throughout the country from April 1, 2005.

All automobiles and fuel - petrol and diesel - will have to meet the Euro-III emission specifications in these 11 cities from April 1, 2005 and the Euro-IV norms by April 1, 2010.

For the rest of the country, Euro-III emission norm compliance for automobiles and fuels will have to be fulfilled by 2010.

According to Mr Naik, in the case of two and three-wheelers, Bharat Stage-II norms will be applicable from April 1, 2005 and Euro-III norms would come into force preferably from April 1, 2008 but not later than April 1, 2010.

``The domestic oil refineries, which have already invested Rs 10,000 crore to achieve Euro-I auto fuel specifications, will have to incur an additional investment of around Rs 18,000 crore by 2005 and another Rs 12,000 crore by 2010," he added.

"The investment requirement of the automobile industry is estimated at Rs 25,000 crore over this period.''

With regard to fiscal incentives for investments to meet the norms, Mr Naik said that these would be announced in the Budget.

IOC white paper moots 20 % sale

IOC today sent a `white paper' to the Petroleum Ministry stating that the Government could sell up to 20 per cent of its stake in the company, accrue up to Rs 8,000 crore, and still retain control.

The Ministry has not reacted to this proposal as yet as it is awaiting the minutes of the recent Cabinet meeting which proposed splitting of the company for onward sale, officials said.

If the Government sells 20 per cent in IOC, it will be left with around 62 per cent.

The Ministry, on its part, is preparing a Cabinet note for approving sale of equity acquired by ONGC, IOC and GAIL (India) Ltd in each other through a swap arrangement a few years ago.

The cross-holding was done with a purpose to fill the Government coffers.

IOC acquired 9.6 per cent in ONGC and 4.8 per cent in GAIL in 1999. It sought Government permission in May last year to go ahead and divest its stake in these two companies. Recently, ONGC has also sought permission to divest in GAIL.

According to the Cabinet proposal, the Government is planning to accord an in-principle approval for sale of the cross-holding among the three companies.

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