The group, which is headed by finance minister Yashwant Sinha, includes petroleum minister K Ramamurthy, Planning Commission deputy chairman KC Pant and external affairs minister Jaswant Singh. The merger of policy for hydrocarbons with energy policy will also be discussed at the meeting, according to official sources.

It is to be noted that in March, the government had decided against disinvestment in Indian Oil Corporation (IOC). The Disinvestment Commission, in its 10th report which was released on Tuesday, had also recommended deferment of disinvestment in Oil & Natural Gas Corporation (ONGC) till "investor confidence in ONGC improves."

Disinvestment in IOC was also deferred for the same reason. Last week, however, the government decided to offload 2.5 per cent of its stake in IOC.

The issues to be discussed at themeeting include formulation of a time-bound framework for price and tarrif reform in the petroleum and natural gas sector.

The terms of reference of the group include identification measures and policies in the area of marketing and refining of hydrocarbons for the rapid development of industry.

The group is also supposed to assess the requirements in respect of ports, shipping, railway tonnage, product pipelines and measures necessary for improving infrastructure.

The group will also discuss the formulation of strategies for India's interface in respect of upstream and downstream operation, trade and transportation of hydrocarbons.

In the first meeting a document,`Vision 2020 of Hydrocarbons,' was presented.