``We want to be an equal partner with Reliance in laying the infrastructure also as we already have a marketing tie-up with the company,'' IOC chairman and managing director M A Pathan told reporters at the sidelines of a seminar on corporate governance balancing value creation and obligations.

Negotiations are going on with Reliance, and IOC would approach the government for approval with a firm proposal, Pathan said adding the pipeline proposal would need the Public Investment Board (PIB) clearance.

Asked whether a separate joint venture company would be formed for the pipeline project, he said, ``we are yet to decide on this. Various options are available with us, either to take up the project through Petronet (India) company or form a separate joint venture company.''

IOC already has amarketing tie-up with Reliance under which the corporation would buy about 50 per cent of the 25 million tonnes of petroleum products a year at international parity prices, to be determined on monthly basis. Reliance had also made a proposal to the government for laying a 3,000 km pipeline running through seven states of the country.

IOC board has recently approved purchase of 50 per cent of five petroleum products -- petrol, kerosene, diesel, LPG and aviation turbine fuel -- which are currently under administered pricing mechanism (APM) from Reliance.

The joint venture with Reliance in the oil pipeline project would also give the company an advantage to market the petroleum products and reduce the burden of capital investment on the corporation, IOC sources said.

Earlier speaking at the seminar organised by the national petroleum management programme (NPMP), minister of state for petroleum Santosh Kumar Gangwar said government is making continuous effort to integrate domestic market with global marketsfocussing on increased growth and efficiency.

``It is important that national enterprises improve their efficiency and products to stay competitive in open environment by identifying areas that need improvement through adoption of latest technologies,'' Gangwar said.

He said we need to work together to frame the new regulatory structure that will balance equally for enhancing corporate profits and safeguarding national interest

``Derugulation and the pressures on corporate sector to grow at a faster rate have stressed the need for a better internal governance,'' he said adding that Indian corporate sector in general and petroleum sector in particular can no longer ignore better corporate practices.