If the government accepts the proposal, it would mean the beginning of the end of the OCC itself.
The need for such a revamp has been felt as the first phase of reforms has already kicked off in the oil sector. The present thinking is that as controls are removed gradually, leading to total freedom by 2002, "the modalities to satisfy the concerns for energy security, customer satisfaction and environmental protection would be required to be put in place."
Teri has proposed that development and regulation of the downstream sector be carried out jointly by the government, a promotional and coordination body and a regulatory authority to "subserve the interest of thecountry, industry and the consumers." In addition, Teri has suggested the setting up of a voluntary organisation (Petro Fed) which would work for the mutual benefit of members of the oil sector.
recommendations are made to the government, regarding improvements/changes in policies and rules as required.Teri has specifically mentioned that "the government cannot withdraw from the responsibility ofensuring supply of petroleum products to meet the full demand in all parts of the country, including far flung areas, at the appropriate price." In addition to formulating policies for the oil sector, the centre would need to exercise powers/controls in the following areas if and when the need arises:
(a) Powers to direct any/all oil refining companies to maintain production of such product(s)-mix as may be required in such qualities and for specified periods and in conformity to specifications laid down by the government.
(b) To direct refining or distributing companies to maintain stocks of petroleum products for a specified period/level.(c) To issue directions to any oil distributing company to supply one or more petroleum products from the stocks held by it at any place in India to installations or depots of any other distributing company.
The government shall also have the powers to direct any refining company to make available such petro-products to the distributing company "as may be specified inthe order."
(d) To ask any of the oil distributing companies to instal depots, installations or storage facilities at any place as may be specified in the order.
(e) To direct any distributing company to deliver for such period petroleum products at the retail outlets as may be specified. The centre will have the prerogative to direct any dealer to receive the petroleum products so supplied against payment of price and other charges.
(f) To direct any of the distributing companies to instal motor spirit (MS) or high-speed diesel (HSD) retail outlets, and SKO-LDO (superior kerosene oil-light diesel oil) dealerships at any place.
(g) To direct any distributing company or any officer of the central or state governments to take over and operate any retail outlet, business premises like showrooms, godowns, offices, storage premises, tanks and dispensing equipment of dealers for sale of any petro-product.
(h) To seek information from any oil refining company or distributing company on their activities andalso to authorise government officials to enter and search any place, stop vehicles used for transportation of petroleum products and seize stocks.
Another interesting input from Teri is the formation of Petro Fed, the voluntary organisation which will "serve the market by providing a common platform for the members to facilitate product exchange and hospitality arrangements.
" It would also identify the various needs of the industry and interact with the government, regulatory authority and other organisations on common issues.
The Petro Fed will be a developmental/promotional body which, among other things, would ensure compliance with agreed industry supply and distribution plans, including pooling of over/under-recoveries, exchange and secrecy of data, pooling of resources and compliance with agreed common guidelines in areas of quality, safety, health and pollution control.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
