Home mkt entry of pvt refiners may under-cut PSUs: Plan Panel

NEW DELHI: With a slump in global demand, private refiners like Reliance are seeking entry into the domestic market, which may lead to under-utilisation of public sector refining capacity, the Planning Commission has said.

Petroleum Minister Murli Deora, in a written reply to a question in Rajya Sabha, said the Planning Commission made the observation during finalisation of annual plan proposals of public sector oil companies for 2009-10.

"With global demand projected to fall, India's private sector refineries are seeking entry into the domestic market. As a result, domestic public sector refineries will be made to compete, resulting in considerable under utilisation of domestic public sector refining capacity," he quoted the plan panel as saying.

Planning Commission also stressed on the need for developing pipelines and related facilities at ports, tank farms, storages and marketing depots as common carrier with regulated usage chargers.

Common carrier facilities are accessible to third parties on payment of certain charges.