Restrictions abrogated for oil sector reforms.

New Delhi: July 3, 2002. keralamonitor.com

The Parliamentary Consultative Committee attached to the Ministry of
Petroleum & Natural Gas discussed the Petroleum Regulatory Board Bill,
2002 in a meeting here today. While welcoming the introduction of Bill in Lok
Sabha by Ram Naik, Minister of Petroleum & Natural Gas, on 6th May
2002, the Members made several suggestions to make the proposed Board
more effective. The Members emphasised that the Board should facilitate both
development of oil industry in free and fair competitive environment and also
protect consumer interests.

Earlier, initiating discussions Ram Naik informed the members that the
need for setting up of the Regulatory Board was felt keeping in view the
deregulation of oil sector w.e.f. 1st April, 2002 which is aimed at bringing in
fair competition, protection of the consumers and encouraging investments as
well as punishing the deviant behaviour. The Bill covers refining, processing,
storage, transportation, distribution, marketing and sale of petroleum and
petroleum products, including natural gas.

The Minister also informed that in view of dismantling of Administered Pricing
Mechanism (APM) effective 1.4.2002, many restrictive circulars and
notifications have been abrogated thereby granting greater commercial
freedom to oil companies. The abrogated circulars inter-alia include:

The Minister also informed the members about the decisions taken recently
including finalisation of the mechanism to handle crude oil market volatilities
through duty adjustments on a review undertaken every quarter. Due to
excessive volatility in international oil market such review would be held earlier
also. The first review resulted in reduction in excise duty on Diesel from 16%
to 14% and on Petrol from 32% to 30% w.e.f. 4th June, 2002. The next
review would fall due in September 2002. The domestic retail prices have now
been aligned with international prices and companies would make further
adjustments on fortnightly basis. Towards increasing oil security of the
country, Naik said, Government launched effective campaign to promote
third round of New Exploration Licensing Policy (NELP-III) with Road Shows
at Singapore, London, Houston and Calgary. The Government also approved a
proposal of ONGC Videsh Limited (OVL) to acquire 25% interest in a
producing-oil field in Sudan with a share of 3 million tonnes of Crude Oil
annually at an investment of about US $ 750 million (Rs. 3,750 crores).

Santosh Kumar Gangwar, Minister of State for Petroleum & Natural Gas,
B.K. Chaturvedi, Secretary, Ministry of Petroleum & Natural Gas also
attended the meeting. In addition senior officers of the Ministry, CMDs and
other senior officers of Oil PSUs attended the meeting.

 

K. JANA KRISHNAMURTHI : A PROFILE

K. Jana Krishnamurthi, who has assumed the office of the Union Minister
of Law and Justice following a reshuffle in the Council of Ministers headed by
Atal Bihari Vajpayee on July 1, 2002, is 72 years old. He was born in
Madurai city (Tamil Nadu). He did his schooling from Madurai and graduated
taking Economics as main, History as subsidiary and politics as special subject.
He passed his Law from Law College, Chennai and successfully practised law
in Madurai for 12 years. During his career as a student he was a recognized
orator and participated in inter collegiate debates and won many prizes. His
oratory in Tamil and English are well known. During Internal Emergency
(1975-77) when civil liberties were suspended, he was Secretary of resistance
movement in Tamil Nadu. He joined Bhartiya Jan Sangh in 1965 and in 1968
gave up his lucrative law practices and became a full timer of the Party at the
call of Vajpayeeji in the aftermath of the murder of Pt. Deendayal
Upadhyaya.

At the formation of the Bhartiya Janata Party in 1980 he was one
of the founder Secretaries of BJP. In 1983, he became one of the General
Secretaries and from 1985 as Vice-President of the Party. In 1993, he shifted
to Delhi and was made incharge of Intellectual Cell, the Economic, Defence
and Foreign Affairs. From 1995 onwards he was incharge of Headquarters till
recently. He was also the spokesperson of the Party. His oratory in Tamil and
English are well known. He is an excellent translator from English and Hindi to
Tamil and has translated the speeches of various leaders like Atalji,
Advaniji and others. He is a good writer too. Jana Krishnamurthi has been
a Member of the National Executive of the Bharatiya Janata Party and till
recently the President of the Party before assuming the charge as Law
Minister. He is elected as Member of Parliament (Rajya Sabha) from Gujarat.
His hobby is reading and study of human nature. He likes music. He is married
with two sons and three daughters, all settled professionally.

Nitish Kumar announces Creation of New Railway Zones

PARLIAMENTARY CONSULTATIVE COMMITTEE OF RAILWAYS MEET

Indian Railways is slowly regaining its financial health and operating ratio has improved from 98.8 to 96 per cent at present, said Railway Minister Nitish Kumar here today. Addressing the Consultative Committee of Members of Parliament for the Ministry of Railways, Nitish Kumar highlighted some of the recent achievements indicating improvement of the financial health of Railways. He informed the Members that the performance of Railways during 2001-2002 has been quite encouraging and the freight loading stood at 492.31 Million Tonnes crossing the target of 489 MT(RE). Savings in Ordinary Working Expenses are Rs. 1487 Crore compared to Budget Esimate. An amount of Rs.249 crore has been repaid with interest to the Capital Fund from General Exchequer, he added.

Addressing the meeting on "State Governments and Private Funding for Execution of Important Railway Projects" Nitish Kumar said that Ministry of Railways has finalised new guidelines to attract private capital in accelerating building up of fixed rail infrastructure. This is aimed to cover the existing projects and also to include some green-field projects. Nitish Kumar further added that stepped up participation of State Governments and Private Sector in funding projects will help speedy execution of important Railway projects, which is very crucial for the all round economic development.

When some members raised the issue of recently created two new Railway Zones, the Railway Minister said that the decision was in line with the Union Cabinet's approval in 1996 & 1998 for creation of new Zones . The Cabinet had also asked the Ministry of Railways to finalise the territorial jurisdictions of the new Zones. The Minister said the issue has been hanging fire for quite some time and had figured in Parliament on a number of occasions. The Railway Board, after due deliberations and observing due procedures,decided about the territorial readjustments of some railways to create these two new Railway Zones which were notified as per the Railway Act. The Minister emphasised that the decision taken in no way is state-centric. The New East Central Railway Zone with Hazipur as Headquarters spreads to the States of Bihar, Jharkhand, Uttar Pradesh and Chhatisgarh. Similarly, after reorganisation, the Eastern Railway will have its jurisdiction in the States of West Bengal Bihar and Jharkhand. He said that it is the duty and concern of Ministry of Railways to look after the interests of all the Railway Zones working under it. Nitish Kumar said that Indian Railway belongs to the whole nation and his Ministry is committed to the development of Railway infrastructure all over the country. Referring to the creation of other proposed five zones the Minister informed the Committee that the Railway Board is seized of the matter and deliberating on the territorial jurisdiction and other administrative matters pertaining to these proposed zones.. The Minister also said that once all the proposed zones will be created, eight out the nine existing zones will be affected as the new Zones will be carved out by taking out Divisional Headquarters from the existing zones. It is, therefore, not fair to say that only Eastern Railway is being singled out for the exercise of territorial readjustment. In fact , smaller zones will ensure efficiency and focussed development of Railway System, the Minister pointed out . The Railway Minister appealed for not making it a emotional and political issue.

Expressing his happiness on signing of MOUs with some State Governments, the Minister disclosed that the Governments of Gujarat,Haryana ,Uttar Predesh and Delhi have shown interest in participating in some railway projects in their respective States. The MOUs already signed with the States of Maharashtra, Tamil Nadu and Jharkhand for different railway projects are unique since two third of the costs would be contributed by the respective states. This would ensure speedy completion of the projects.

A Joint Venture named Mumbai Rail Vikas Corporation (MRVC) formed with the Government of Maharashtra. The quity of 25 crores shared in a ratio of 51:49 between Ministry of Railways and Government of Maharashtra to execute the suburban rail projects of Mumbai Urban Trains Project (MUTP). The total cost of the rail components of MUTP has been estimated at Rs.5618 crores, out of which the total cost of the Phase-I project is Rs.3125 crores. The World Bank is expected to provide a loan of Rs.1613 crores, the remaining project cost of Rs.1512 crores will be shared on 50:50 basis between Government of Maharashtra and Indian Railways as counter part fund.

Indian Railways (IR) will levy surcharge on Mumbai suburban commuters to realise Rs.2891 crores in 14 years to repay the World Bank loan. Phase I is expected to be completed by 2006-2007.