The Hindu Business Line : Creating energy security priority area: Murli Deora

IMPROVING the track record of public sector oil companies in exploration, the issue of fuel subsidies, and the problems of the bleeding public sector oil marketing companies (OMCs) would be some of the focus areas for the new Petroleum Minister, Mr Murli Deora.

Stating that he would continue to strive for a strategy to ensure the fuel supplies and energy security of the nation, Mr Deora emphasised on the Government's commitment to pursue efforts at acquiring oil assets overseas.

"India is one of the fastest growing economies of the world and our Government's economic policies are aimed at ensuring and even bettering the country's growth over the next several years. As a result of this economic growth, the country's fuel and energy needs are also growing significantly. I will continue to steer the ministry to achieving this strategy of ensuring the fuel supplies and energy security of our nation," the Minister said.

Interacting with newspersons soon after assuming office today, Mr Deora, who was accompanied by his predecessor, Mr Mani Shankar Aiyar, said: "The track record of public sector oil companies in exploration is not good. I don't want to take names of any PSU. But we need to step up our exploration activities to achieve energy security."

While stating that it would be premature for him to comment on any major issues concerning the Ministry, Mr Deora said that domestic issues such as making available subsidised cooking fuel to vulnerable and poor sections, bringing the OMCs back into health, and exploring untapped hydrocarbon reserves were also priority areas on his agenda for the country's energy security.

The Minister stressed the Government's commitment to provide vulnerable sections of the society with fuel at an affordable price, while ensuring that the State-owned oil companies did not bleed.

"We have to provide kerosene oil and liquefied petroleum gas at a subsidised price to the poor. But it is essential the PSUs should not suffer losses or the losses be reduced."

For the purpose, the Minister said that he would be interacting with the partners of the United Progressive Alliance, including the Left parties, to evolve a consensus on Ministerial policies. "I will seek co-operation from alliance partners. I am aware of the Left position on various issues relating to the Ministry."

Mr Deora indicated that he would take up the matter with Finance Minister, Mr P. Chidambaram, on the duty structure of the petroleum products, particularly kerosene and LPG.

On the Dr C. Rangarajan Committee report, Mr Deora said that it was expected next week and that the Ministry would take a view on it.

Asked whether there would be continuity in the policies initiated by Mr Aiyar, the Minister said that some of the policies would continue and some of the policies may need change.Mr Deora also said that the strategy of acquiring oilfields abroad was a good idea when nearly 70 per cent of country's oil requirements are met through imports.

"The country's decision to acquire oil equity abroad at a time the oil prices were low have paid rich dividends. We have been able to recover our investments overseas."