The ministry has indicated that an expert committee has stated that the capacity of Reliance Petroleum's refinery has now been assessed at 4,50,000 barrels per day (equivalent to 21.3 million tonnes annually) and that of Essar, as under construction, is 10.5 million tonnes per annum.

"As and when expansion of capacity takes place, the Oil Coordination Committee (OCC) will re-assess capacity," the note from the ministry states. The availability of different controlled products shuld be assessed on only this basis, it adds.

While IOC will market 50 per cent of the products, the balance will be shared equally between Bharat Petroleum Corporation and HindustanPetroleum Corporation. "Subject to this entitlement, inter-company adjustments may be a matter of the individual company concerned. BPCL-HPCL may negotiate and sign similar agreements as by IOC with RPL/Essar," the ministry has said.

The third amendment to the agreement is that the oil marketing companies (IOC, BPCL and HPCL) will lift the controlled products during the administered pricing mechanism period to the extent required in the domestic market in the ratio of 50:25:25. Export of surplus products, if any, will have to be made without any financial liability to the oil pool account and as per the stipulation of the OCC.

According to the ministry, refineries are presently not recompensed terminalling charges on facilities owned by them. Therefore, "a uniform objective policy in this regard as may be evolved, will apply to all existing and new refineries including PSU/JV refineries," the ministry note says.

In case of inventory and stock-loss charges, the practice and formula of the OCC asannounced from time to time will apply uniformly to all refineries in the country. The ministry has reiterated that the proposed agreement must ensure neutrality of the oil pool account and no extra liability to the government.