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.