Oil discovered by foreign companies to be marketed in India, says Aiyar

New Delhi, Aug 4 | Updated: Aug 5 2005, 05:30am hrs
The government on Thursday made it clear that all oil and gas discovered by foreign exploration companies in India would be marketed only inside the country. Whatever oil is discovered has to be marketed in India. Similar is the case regarding gas. We shall not allow any collaboration with any foreign company which is disadvantageous to our nation, oil and gas minister Mani Shankar Aiyar said in the Lok Sabha.

To a question whether government did a cost-benefit analysis before allowing foreign companies especially for the development of oil fields which have already been discovered, the minister said we require further investment, technology and managerial experience of overseas companies for the development of oil fields.

Refineries in good health

The government has said none of the refineries has incurred a loss, but IOC, HPCL and BPCL, which are also into marketing have suffered losses during the first quarter of this fiscal.

Oil marketing companies (OMCs) have had to face huge under-recoveries in previous years and even cash losses in the first quarter of this year, Mr Aiyar said. This is because OMCs, in accordance with administrative instructions, have been modulating the impact of high oil prices on domestic retail prices of sensitive products, he added.

Diesel supply for Pakistan

The Pakistan state oil company has requested IOC to submit an indicative price for supply of diesel on delivered basis at Lahore, Jhelum and Karachi, Mr Aiyar said to another question. IOC submitted non-binding offer for supply of 3,25,000 mt of diesel during October 2005 and March 2006, he said.

However, the export could materialise only if diesel is removed from the Negative List of importable items from India into Pakistan, he said.

Jet Airways top defaulter

Jet Airways tops the list of defaulters among private carriers and owes Rs 2,437.90 lakh to the government, the Lower House was informed on Thursday.

Replying to questions, civil aviation minister Praful Patel said that while Jet Airways owed Rs 2,437.90 lakh, Sahara Airlines had to pay Rs 1,115.25 lakh to the government as on March 31, 2005. He said dues are moinitored regularly by Airports Authority of India and action through legal or arbitration or the Public Premises (PPE) Act are taken wherever necessary.

Satellite surveillance system

India would have a satellite-based military surveillance and reconnaissance system in place by 2007, defence minister Pranab Mukherjee told the House.

PTI