Consultative panel against privatisation of oil PSUs

NEW DELHI: Buoyed by an impressive increase of about Rs 1,000 crore in the net profits of oil PSUs to Rs 12,750 crore, members of Parliamentary Consultative Committee on Petroleum are understood to have disfavoured privatisation in the sector.
The issue is believed to have come up during the meeting of the committee on Monday night with members cutting across party lines emphatically asking government to continue with the PSUs whose profitability is more than two-and-a-half times the total paidup capital.
The meeting of the Committee, which was called to review performance of 12 PSUs under the Oil Ministry, assumes significance in the backdrop of sharp differences between Petroleum and Disinvestment Ministries on privatisation.
Disinvestment Minister Arun Shourie and Petroleum Minister Ram Naik are locked in a bitter war of privatisation versus a public offer for BPCL and HPCL.
Almost all the 33 members attending yesterday''s meeting, voiced resentment over moves to privatise highly profitable Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) which paid dividend equal to their paidup capital and are provided no budgetary support from the Government, sources said.
Members pointed out that 12 oil PSUs posted a net profit of Rs 12,749.53 crore in 2001-02 on a total paidup capital of Rs 5,204.18 crore.
Oil PSUs have been paying the government over 100 per cent of their equity capital, the only money invested by the government in the companies and as such is not a case for disinvestment, members said.