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Govt may issue ordinance to set up regulatory body for petroleum
Government is likely to issue an ordinance to put in place a regulatory mechanism for the downstream petroleum refining and marketing sector to meet the April 1, 2002 deadline for dismantling administered pricing mechanism (APM).
Government is likely to issue an ordinance to put in place a regulatory mechanism for the downstream petroleum refining and marketing sector to meet the April 1, 2002 deadline for dismantling administered pricing mechanism (APM).
"The draft bill has been finalised. It would now be sent to Law Ministry for vetting after which it would be presented to the Cabinet for approval. The bill will then be introduced in Parliament and like any other bill, it is likely to be referred to a Parliamentary standing committee. It may take sometime to get its approval and we might have to resort to an ordinance to meet the deregulation deadline," government sources said.
Government proposes to have two separate regulators for downstream petroleum activities and gas transportation and marketing.
The present Directorate General of Hydrocarbons would be converted into an upstream regulator, sources said. Among the duties of the proposed downstream regulator would be to ensure level playing field between PSU and private players, lay ground rules for opening and operation of retail outlets, attract investment in the sector and infuse competition.
The regulator would also decide on the transportation charges and other levies for using pipelines and other infrastructure on common carrier principle basis, sources said.
The proposed regulator may also look at the issue of providing freight equalisation subsidy for far-flung areas if the Government decides to provide that from the General Budget, sources said. Post-APM dismantling crude, petroleum products and natural gas would be transported on common-principle basis. "Regulator will look at the same," sources said.
While the next Budget would carry provisions for duty changes, if any, as per the 1997 Cabinet decision for dismantling of APM, other steps like regulatory mechanism and other issues would be sorted out by March 31, 2002.
"We need to put in place a regulator much before the sector is deregulated and hence the thinking on issuing of an ordinance," sources added. Bureau Report
Government proposes to have two separate regulators for downstream petroleum activities and gas transportation and marketing.
The present Directorate General of Hydrocarbons would be converted into an upstream regulator, sources said. Among the duties of the proposed downstream regulator would be to ensure level playing field between PSU and private players, lay ground rules for opening and operation of retail outlets, attract investment in the sector and infuse competition.
The regulator would also decide on the transportation charges and other levies for using pipelines and other infrastructure on common carrier principle basis, sources said.
The proposed regulator may also look at the issue of providing freight equalisation subsidy for far-flung areas if the Government decides to provide that from the General Budget, sources said. Post-APM dismantling crude, petroleum products and natural gas would be transported on common-principle basis. "Regulator will look at the same," sources said.
While the next Budget would carry provisions for duty changes, if any, as per the 1997 Cabinet decision for dismantling of APM, other steps like regulatory mechanism and other issues would be sorted out by March 31, 2002.
"We need to put in place a regulator much before the sector is deregulated and hence the thinking on issuing of an ordinance," sources added. Bureau Report