The Hindu Business Line : Projects in petroleum sector — Govt not considering impact of major policy decisions: Panel

THE Committee on Public Undertakings has criticised the Government for not taking into consideration the likely impact of major policy decisions on the ongoing projects, especially in the case of petroleum sector.

After going through the Action Taken Report by the Government on its earlier report's views on Hindustan Petroleum Corporation Ltd, it stated, "the reply of the Government was vague and evasive."

The committee, in its recommendations, had observed that the deregulation of the administered price mechanism by the Government in 1998 had resulted in under-utilisation of Mumbai-Vashi pipeline of HPCL. In view of this, it had recommended that before taking such major policy decisions in future, the Government should take into consideration the likely impact of such decisions on the ongoing projects of public sector undertakings and make all possible efforts to minimise any adverse effect on them.

In its reply the Government had submitted that in a deregulated scenario, the market force would ensure that the investment made by the oil companies in pipeline infrastructure is on commercial considerations.

The recommendations of the committee pertain to policy decisions to be taken by the Government in future, which necessarily should take a critical look at the on-going projects from the point of view of the impact of the new proposed policies.

But the reply of the Government does not speak about this requirement for taking a critical view, the Committee noted, adding that the real spirit of recommendation has not at all been commented upon by the Government in its action taken note.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page