"It will not be possible for any stand-alone refinery or marketing company to survive...'' after the oil market is deregulated in the year 2002, said International Management Institute director and former Planning Commission member, Nitish Sengupta. The committee's brief included examining prospects of alliances, mergers or integration between IBP Company, Madras Refineries Limited (MRL), Numaligarh Refineries Limited (NRL), Cochin Refineries Limited (CRL) and Bongaigaon Refineries and Petrochemicals Limited (BRPL).The committee members, who preferred to keep the contents of the report under wraps, admitted that it contained specific recommendations on strategic alliances among national oil companies. The realignments of the stand-alone companies, it has said, should take effect atonce.

Sengupta acknowledged having taken cognisance of the recommendations of the Disinvestment Commission in formulating the post-liberalisation strategy of the stand-alone companies. The Disinvestment Commission has called for a strategic sale of 50 per cent of the government holding in BRPL, with a commitment to dilute its stake further to 26 per cent through a public offer subsequently.

The panel has suggested that the Centre offer a 33.9 per cent stake to a strategic partner in IBP Company as well, bringing down the government shareholding in the company to 26 per cent from 59 per cent now. The Union Cabinet is yet to take a decision on the panel's suggestions for either company. Responding to questions from the media, Sengupta said crossholdings would be part of the realignment process among the oil companies. The four-member committee, submitted its report in two volumes to Union petroleum and natural gas minister, VK Ramamurthy, on Friday. The minister said he would take a decision on therecommendations, after examining the reports thoroughly.