Debarring IOC from HPCL, BPCL bid against Constitution: Panel

NEW DELHI: A Parliamentary Committee has termed as ''irrational'' the government''s decision to debar Indian Oil from bidding for HPCL and BPCL saying the decision was against the spirit of the Constitution.
"The government has decided to debar IOC from bidding for HPCL and BPCL for the reason that after acquiring these companies IOC would become a monopoly. This decision is not only irrational but against the spirit of Article 19 of the Constitution of India," Parliamentary Standing Committee on Petroleum & Chemicals said in its latest report.
In its report on Disinvestment in Petroleum, which was tabled in Parliament on May 17, the Committee headed by Mulayam Singh Yadav said "Article 19 (6) (ii) permits state monopolies in any trade, business, industry or serve, whether to the exclusion, complete or partial, of citizens or otherwise."
The Committee disagreed with the contention of the Ministry of Disinvestment that petroleum sector is a service sector and IOC''s winning bid would make it a monopoly.
Stating that petroleum industry was a manufacturing sector with refining capacity in excess of 115 million tonnes, the committee said all petroleum products except petrol and diesel can be freely imported.
"The new entrants especially MNCs in the petroleum sector are likely to import petroleum products including petrol and diesel and this situation will certainly create competition. In this situation allowing IOC to bid for BPCL and HPCL cannot be considered as leading to monopoly," it said.