Aiyar hits out at oil PSUs' slug fest

'Destructive competition' among PSU's must come to an end: Aiyar.

Petroleum Minister Mani Shankar Aiyar has taken exception to the manner in which public sector undertakings are battling it out among themselves.

Aiyar told Business Standard the chairmen of public sector oil and gas companies were engaged in "destructive competition", and said he wanted to bring about institutional changes to end the malaise.

Citing Gail India Chairman Proshanto Banerjee's reaction to Indian Oil Corporation's deal with Iran's Petropas for developing an LNG block and the tussle between the two companies for a share in Haldia Petrochemicals, Aiyar said such internecine rivalry was not required.

Banerjee had said last week the government should have made Gail India Oil and Natural Gas Corporation's partner for the Iran project.

"I don't know why these people, who have worked together for 30-40 years, are behaving like this," Aiyar said, when asked about his views on IOC's Iran deal. However, the minister said he would not oppose the deal since it had been initiated before he assumed office.

Taking into view the absence of synergy in the energy sector, Aiyar is keen to get an approval from the Prime Minister's Office for the setting up of an expert panel.

The petroleum minister had earlier announced the setting up of a high-level panel on the restructuring of oil PSUs -- the advisory committee on synergy in energy -- headed by National Advisory Council member V Krishnamurthy.

"I have eight options. The committee will consider them and then we will bring about institutional changes," Aiyar said. The committee is expected to recommend ways to leverage the strengths of state-run oil firms in their respective areas of competence.