The Vision 2025 report will put to rest the speculation about the fate of these refineries kindled by a slew of reports including the Sengupta committee report. Incidentally, the petroleum ministry has asked the refinery managements to change their names to Kochi Refineries Ltd and Chennai Refineries Ltd.

Union Minister for Petroleum and Natural Gas Ram Naik said here on Friday that the future of stand-alone refineries would be bleak once the government does away with the administrative price mechanism (APM) by 2002.

"In my opinion stand-alone refineries could not survive in a liberalised atmosphere without strong marketing network and support. The refineries in question now lack this capability and the government is considering how these problem should be tackled". "The first option before us is to be merge these refineries with those oil PSUs having strong marketing network", Naik said.

The second option is to allow the stand-alone refineries to have strategic tie-ups with other players or develop their own marketing network.

However, the petroleum ministry seems to be not keen on the second option. "The best option for orgainsations like CRL will be to merge with an existing oil PSU with strong marketing network. It is better to merge the smaller PSU with bigger PSU as it would enhance the asset base of the latter", he said.

The minsiter was addressing the press after visiting CRL.

The Vision 2025 being prepared by the Cabinet sub-committee on petroleum was set up the Union government to chart the future course of the hydrocarbon industry in view of the current changes in the sector.

If the government gives the green signal for the merger of these refineries with oil PSUs, Indian Oil Corporation or Bharath Petroleum Corporartion Ltd will be the beneficiaries.

The minister also said the future of the expansion project of CRL also hinges on the Vision 2025 report. CRL had made a proposal for expansion of its capacity from the existing 7.5 mmpta to 13.5 mmpta.

The project is expected to cost Rs 4,200 crore. The minister said the refinery, one of the best in the country, will be able to mobilise the resources on its own for the exapnsion work. But the project has to be viewed in the background of the policy chnages being introduced in the sector.

He said his government had cleared the proposal for the Rs 2,990-crore 500-mw power project by CRL. The ministry had granted permission to CRL to set up a private limited company for the implementation of the power project. CRL will have 26 per cent equity while L&T and Ambalamugal Power Company will have 26 per cent. The Kerala State Electrcity Board will have 11 per cent equity while the rest will be held by the public.

Petronet LNG stake okayed
Putting an end to the six-month long battle for equity stake in the Rs-500 crore Petronet LNG, the ministry of petroleum and natural gas has finally decided to give 10 per cent equity in the venture to four hydrocarbon PSUs and NTPC. According to the final plan, the government has earmarked 50 per cent stake in the venture to IOC, BPCL, GAIL, ONGC, the original promoters of the venture and NTPC. The remaining stake in the venture will be allotted to the public, minister for petroleum and natural gas Ram Naik said gere on Friday.

The Petronet equity structuring has been hanging fire for some time following the dispute over equity stake in the venture. The wrnagle over the Petronet equity started with NTPC staking claim for a substantial stake in the venture, which was met with stiff restisetnce from the oil PSUs. NTPC has made its case through the power ministry that being the largest consumer of LNG it shoud be given a major stake in the venture. Petronet LNG is putting up two LNG termonals one at Kochi and Dahej.