Rajasthan to set up petroleum corporation
Looking at the success of Gujarat State Petroleum Corporation
and also to participate in the state's new found oil wealth, the Rajasthan
government has decided to set up a similar state petroleum corporation. "The
matter is with the state cabinet and no decision has been taken yet," says Ashok
Singhvi, the state principal petroleum secretary.
The state had decided almost two years ago to set up a corporation to
participate in the gas grids, urban gas distribution and pipeline products
within the state as well as outside. An allocation of Rs 100,000 was made in the
budget at that time, but no decision has been taken as of now about the capital
of the company and the proposed investment.
Various states which have of late become sources of oil gas want an active
participation in the sector to ensure energy security for the state. States have
also been wanting to regulate the sector which has become a controversial issue.
Gujarat had come up with a state petroleum regulatory bill which couldn't go
beyond that as the Supreme Court ruled that only the Centre can have regulatory
role in the sector.
Despite this ruling, Uttar Pradesh went ahead with the regulatory act. "We are
planning to file a petition in the Supreme Court bringing to their notice the UP
case," says a Union ministry official.
[18 December 2006]