The ministry has circulated a cabinet note on mergers of stand-alone refineries with oil marketing companies to prepare them for deregulated oil market in India from the year 2002, highly placed ministerial sources said on Monday.

The Sengupta committee had suggested that Bharat Petroleum (BPCL) buy up the entire government equity in Cochin Refinery (CRL) besides MRL's tie up with both IOC and BPCL.

The sources said the ministry had accepted the entire recommendations of the committee but with certain modifications and the final decision on the issue was Left for the cabinet.

National oil companies had strongly protested against the recommendations of the committee, with IOC conveying to the petroleum ministry that it already had marketing tie ups with CRL, MRL and BongaigaonRefineries (BRPL).

On the other hand, officers' association of the CRL has written to the Union government protesting against proposed merger of the refinery with BPCL.