|
The Advisory Committee on “Synergy in Energy” headed by Dr. V. Krishnamurthy submitted here today its Report to the Minister of Petroleum & Natural Gas, Shri Mani Shankar Aiyar recommending that for the present there is a need to strengthen the present structure of Oil PSUs by policy and management improvements rather than merger. It has also recommended implementation of national shareholding concept with enhanced autonomy and without altering PSU character.
The Committee was set up by the Government in January 2005 to recommend appropriate structure and the Oil PSUs for leveraging their strengths to optimally fulfill their required contribution to the national objectives of energy security, accelerated growth, sustained development and social objectives of the Government policy. The Committee was also asked to examine the core competence of the Oil PSUs to assess their competitiveness in evolving domestic and international scenario.
Other members of the Committee include Shri G.V. Ramakrishna, Shri G.K. Arora, Dr. Vijay L.Kelkar, Shri B.C. Bora and Shri U. Sundarajan.
The Committee recommended policy and structural changes and also suggested management solution for improved performance.
1. The Committee had concluded that merger of Oil PSUs or formation of holding company may not be advisable for the present.
2. On Policy issues the Committee referred the need for an integrated energy policy, setting up of Cabinet Committee on Energy headed by the Prime Minister, setting up of Energy Ministry. The Committee has also recommended revamp of the existing framework of supervision and over view by various agencies like C&AG, CVC, PESB & CBI by setting up of Pre-investigation Board with former PSUs Chiefs, Government and Private Sector representatives.
3. The Committee has also recommended empowering DGH as autonomous body with a separate cadre of experts and access to funds.
]
4. For overseas venture, the Committee has suggested setting up of a parallel new entity by Oil India Limited. Intense Competition in overseas bidding is to be avoided by fixing up a limit related to the production capacity of more than 2 MT of oil equivalent for OVL, below which the other new entity would be permitted to bid.
5. Another far reaching recommendation of the Committee related to the implementation of National Shareholding Trust, modeled after Temasek of Singapore and Khazanah of Malaysia, but with a modification. The Oil PSUs which will join the Trust will continue to retain the PSU character and the Trust will function as non-profit Trust set up under the Societies Registration Act or under the Companies Act or as a statutory body. The Board of the Trust will comprise of eminent personalities from Government, Public Sector and Private Sector. The greater autonomy to Trust would ensure synergy in operations.
Ministry of Petroleum & Natural Gas
New Delhi : Asadha 20, 1927/ July 11, 1927
RCJ/kc/ ‘Synergy in Energy”
|
