The committee noted the ministry had spent just Rs 34,000 crore during the first three years of the Ninth Plan as against the plan target of Rs 78,400 crore and said "deviation on any count including non-utilisation of plan funds, is considered as lack of effort to reach the goal."

Expressing doubts on the ministry achieving targets in oil exploration and production, the committee called for review of overall policy planning to accelerate production of indigenous crude oil and gas.

The committee said delays by Oil and Natural Gas Corporation (ONGC), Oil India Ltd (OIL) and Gas Authority of India (Gail)in taking up exploration work accounts for Rs 500 crore shortfall in planned expenditure, while delays in implementation of new refinery projects led to non-utilisation of Rs 2,000 crore.

It noted with concern the delay in Bina Refinery project due to non-clearance from the ministry of environment and forest and asked the ministry to examine the possibility of waiver of environmental clearance of oil sector projects. Noting that Bina Refinery project was awaiting final environmental clearance for the past five years, the committee warned against the national oil companies lagging behind due to delays even though private players like Reliance were making much headway in refining capacity. "The import of the recommendations should be appreciated fully instead of finding solace in the fact that only two private sector refineries have made progress," it said referring to the ministry's explanation.

Committee deprecated the "double standards" adopted in giving environmental clearance saying Bina Refinery wasnot given clearance as pipelines passed through coral reef in Gujarat Maritime National Park, whereas Reliance pipelines under identical terrain were cleared.

"We appreciate the role of ministry of environment and forests but do not see any justification in having one set of standards for public undertakings and another for private companies and also taking more than five years in according final approval," the committee said.

Reiterating the recommendation of environmental clearance waiver to oil sector projects approved by the Government, the committee said the least the Centre can do was to regulate environmental clearance in a time-bound manner.Stating that the import of recommendation should be appreciated fully, the committee asked the ministry to make efforts to get the pending projects of national oil companies implemented immediately.