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Govt Cancels Oil Dealerships Since Jan 2000

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BUSINESS STANDARD

Barely two days after senior BJP leaders made loud claims that theirs was a "government with a difference", the party leadership had to make a tactical retreat to save itself from the major embarrassment arising out of the petrol pump allotment controversy Worried that the trail might lead to the Prime Minister's relatives, the government cancelled all the allotments of petrol pumps, LPG and kerosene agencies made from January 2000. It was the Prime Minister who took the decision. "Yeh karna hai" (This has to be done) he is reported to have said at a meeting where the decision was taken. Deputy Prime Minister LK Advani concurred that the PM's and the party's image could be badly dented by the controversy and that this could have its repercussions on the forthcoming assembly elections.

 

The cancellations affect 1,134 petrol pumps, 1,788 LPG distributorships, and 236 kerosene dealerships. These will be auctioned on the basis of competitive bidding, modalities for which are being worked out by the petroleum ministry.

Disinvestment minister Arun Shourie had, at the National Council meeting of the party of Saturday, observed that the BJP was close to losing its reputation as a party with a difference following events like the petrol pump allotment episode. Despite this, till Sunday, the BJP's strategy had been that it would fight it out with the Congress on the floor of Parliament.

But crisis managers of the government found situation hard to handle after the revelation that one of the allottee in UP was a close relative of the PM and had used the PM's Lucknow address. "The PM's image is most dear to us" confided a cabinet minister.

At a hurriedly-convened meeting at the PM's chamber in Parliament attended by deputy Prime Minister LK Advani, information minister Sushma Swaraj, parliamentary affairs minister Pramod Mahajan and petroleum minister Ram Naik, Vajpayee is understood to have stated that the allotment controversy was a major embarrassment. Mahajan's move to procure a list of Congress beneficiaries was abandoned mid-way as senior leaders felt it would have generated mutual recrimination of the worst kind.

Later, managers tried to justify the turnaround and said the decision to cancel the allotments was the part of a calculated strategy to take wind out of the Opposition's sail. "Now, the opposition will be seen as being unreasonable if they continue to disrupt the house" claimed BJP spokesman Vijay Kumar Malhotra. "This is the first time that the government has taken such prompt action merely on the basis of allegation" he said.

The Congress has turned the heat on the government by asserting that the PM's decision was nothing but "admission of the guilt". "Though the decision was welcome, Naik cannot escape responsibility and must resign immediately," said Congress spokesman Jaipal Reddy. Kapil Sibal described the event as the "India's biggest scam since independence" and demanded a probe by a sitting Supreme Court judge assisted by the CBI.

The sound and fury witnessed in both houses of Parliament was on expected lines: an aggressive Opposition demanding a statement from Prime Minister Atal Bihari Vajpayee while the treasury benches making counter allegations. Though Naik was scheduled to make a suo-moto statement in both the houses, the Opposition rejected the suggestion and demanded Naik's resignation. With ten minutes, both the houses were adjourned for the day.

However, one thing is clear - the BJP would appear to have thrown the baby out with the bathwater. Petrol pump dealerships have traditionally been to provide succour to the unemployed, the handicapped, war widows, etc. With competitive bidding, only the rich will now be able to get dealerships.


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First Published: Aug 06 2002 | 12:00 AM IST

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