Restructure oil PSUs on a selective basis: Pant

Planning Commission Deputy chairman K C Pant prescribed restructuring public sector oil companies on a "selective basis" to achieve the 8 per cent economic growth target set for the 10th Five Year Plan period.

Addressing the theme session of the Petrotech 2003 conference in New Delhi, Pant said: "The Tenth Five-Year Plan lays down the priorities for the oil and gas sector to further the development and consolidation of the related industry."

Pant's comments assume importance in the wake of the ongoing debate on the divestment of the oil PSUs, which has seen intense bickering over the mode and quantum of government stake sale.

While it has been decided to sell government shareholding in Hindustan Petroleum Corporation Ltd to a strategic partner, a public offering of equity shares would be made in case of Bharat Petroleum Corporation Ltd.

Pant also called for creation of an apex committee on energy to manage the trade-offs between the divergent objectives that could arise among the different sub-sectors.

Setting out priorities for the sector, he said laid emphasis should be on "improving energy efficiency, benchmarking the entire hydrocarbon sector to the international level, creating an atmosphere for the development of infrastructure facilities, promoting a greener and cleaner environment, establishing a regulatory board and developing alternative fuels."

He also laid emphasis on international co-operation for acquisition and integration of new technologies in the Indian petroleum industry in order to the raise the quantum of domestic supplies.

"Options like incorporating improved oil recovery, deep water exploration, frontier basin exploration, promotion of coal bed methane, development of gas hydrates and development of underground coal gasification should also be implemented", Pant said.

He said the future of the Indian hydrocarbon sector would be knowledge-driven and there were several opportunities in the development of new fields with prospective international partners.

The application of information technology has had a tremendous impact on the efficiency and effectiveness of the oil and gas industry worldwide, he said.

"India's proven competence in software development can be an important component of our contribution to any co-operative venture for design and development of customised solutions for the international oil and gas sector", Pant said.