The issue is likely to be raised when petroleum minister Ram Naik and DoD minister Arun Shourie meet here in the first week of September, sources said while pointing out that the scheduled meeting last week could not take place due to non-availability of senior officials at the last minute. DoD had earlier proposed lowering of government equity in ibp from 59.59 per cent to 26 per cent by induction of a strategic partner even as it turned down the offer of IOC to outrightly buy government equity saying PSUs could participate in the bidding process. PTI As per earlier cabinet decision, marketing of petro products would be the domain of national oil companies till the deregularisation of oil sector by the year 2002 and any foreign company could enter the marketing sector only if it invested at least Rs 2,000 crore in production, exploration or refineries sectors.

The private sector major - Reliance Refinery at Jamnagar with a capacity of 27 million tonnes has also not yet been given the marketing rights in the country and it has tied up with Indian oil corporation for marketing of 50 per cent of its products and with hindustan petroleum and bharat petroleum for the other half.

Even though senior officials from both the ministries declined to comment on the issue, sources said that shourie would seek to evolve a consensus on divestment in oil sector in general and privatisation of IBP in particular on the basis of recommendations of the erstwhile disinvestment commission, headed by GV Ramakrishna.

Sources said that not only IOC has written to petroleum ministry formally for acquiring standalone marketing company ibp, which has over 1500 retail outlets, but IOC chief MA pathan has also met shourie with his proposal.

Amidst the firm international oil prices coupled with high duty structure in the country, global majors are eyeing IBP for its marketing network so that they could enter India with cheaper imports.

Although only four oil psus- IOC, ibp, HPCL and BPCL - are marketing petro products in the country, major consumers in power and fertiliser sectors are expolring import of deregulated petro products like naptha, fuel oil etc as it would help them save on heavy duties in the country.