He did not rule out a subsequent global depository receipts (GDR) issue,though, adding, "I cannot walk into the market like a blind man, we are waiting for a slight improvement in the (GDR) market." The minister reiterated that the centre would "not go back on (its) disinvestment plan".

The pre-issue exercise for Indian Oil's disinvestment, first scheduled for December, was postponed by a couple of months. The global advisors to the issue, Credit Swiss First Boston and Goldman Sachs, will select managers in January.

Gas Authority, which withdrew its road show for a GDR issue of 200 million shares last year, was expected to hit the road shortly after Container Corporation ofIndia. Ramamurthy did not specify whether Indian Oil and Gas Authority issues would open during the current financial year.

But sources say that the two state-run units' scheduled divestments were planned through GDR issues and the time frame was before March-end next year.

Decision on private-sector investment in pipelines soon

The minister told an Assocham seminar that the decision to open up pipelines to the private sector would be taken by the year-end. He ruled out setting up a parallel pipeline network with Petronet India.

The centre has, meanwhile, received requests from private-sector oil refiners, like Essar Oil and Reliance Petroleum, for permission to set up pipeline networks that were independent of Petronet India. Ramamurthy said a regulatory body might be formed to monitor the development of a pipeline infrastructure for the oil industry.

Action plan for augmenting oil stocks

The minister also announced that the centre had initiated a plan for augmenting the country'scapacity for storing crude oil and petroleum products, to international levels. "Currently the oil industry maintains a mandatory inventory for crude oil and petroleum products, which ensures security in the unlikely event of any major supply disruption." Engineers India is working on a comprehensive plan to augment tankage facilities, which would, for a start, enhance the country's oil-stocking capacity so that it was equal to 21 days consumption. Worldwide, oil inventory is usually equal to at least 45 days' consumption.

European governments maintain oil stocks for 22 days, while the petroleum industry keeps an inventory of 64 days, taking the total tally to 86 days.

North America has a capacity to store petroleum products equal to 80 days' consumption.

Ramamurthy said storage tankers and underground storage facilities would be built along the east coast over the next three years to augment the country's holding capacity, so that it was equal to 21 days' consumption. "We have a floating tankage," hesaid.

The petroleum minister, who had hinted at a decline in diesel prices in Chennai recently, hedged a direct question, saying that the price had been pegged down thrice since the partial decontrol beginning April this year. "Diesel prices will remain (where they are) for now," he said.