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Petroleum policies still with govt

Pradeep Puri

The government will retain wide-ranging powers in the petroleum sector even after the establishment of a regulatory authority for the downstream sector.

This was revealed in an official paper that said the government would continue laying down policies relating to the downstream petroleum sector, "keeping in view the objectives of oil security within the country and the interests of the consumer."

Moreover, it has been proposed that in the event of war, natural calamities, strikes, industrial unrest, joint action by groups leading to disruption of supplies or any other circumstance affecting public interest, the central government will be empowered to intervene and, by notification for a limited period, to take over the control and management of any storage site, facility and business premise of any company.

Under these circumstances, the government will also have the power to suspend the operations of any company, or entrust any agency of the Centre or the state governments to manage the firm concerned in the manner directed by the central government for the period provided for in the notification.

Regarding the procedure for laying a pipeline as a common carrier, the government has clarified that if the regulatory board is of the opinion that it is necessary or expedient to declare a pipeline for transportation of petroleum products a common carrier, or that an entity be authorised to lay, build and operate or expand a pipeline as a common carrier, it may give wide publicity of its intention and invite objections and suggestions.

The board will provide an opportunity of hearing to the entity owning, laying, building, operating or expanding the pipeline, and set the terms and conditions subject to which the pipeline may be declared a common carrier.

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