Lok Sabha Question No. 125 (STARRED), answered on 2025-02-13
Subject: Action Plan for Major Oil Marketing Companies
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Hanuman Beniwal

## LOK SABHA STARRED QUESTION NO. 125 TO BE ANSWERED ON 13 th FEBRUARY, 2025

## Action Plan for Major Oil Marketing Companies

†*125.  Shri Hanuman Beniwal:

## पेĚोͧलयम एवं Ĥाक ृ Ǔतक गैस मंğी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a)  whether  the  Government  has  an  action  plan  for  the  functioning  of  major  oil  marketing companies of the country such as Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL);
- (b) if so, the details thereof;
- (c) whether it is true that these companies have ignored several important guidelines issued by the Petroleum and Explosives Safety Organization and the provisions of Petroleum and Natural Gas Regulatory Boards Act, 2006 during this tender process;
- (d) if so, the details thereof along with the details of the action taken/proposed to be taken by  the Government against those responsible for this negligence/oversight; and
- (e)  whether  it  is  true  that  in  2018,  the  oil  marketing  companies  in  India  have  issued  several illegal  work  orders  by  ignoring  the  orders  of  the  Delhi  High  Court  related  to  the  MSME  act, 2012 as well as rules and regulations in executing the tenders  for bulk LPG transportation by road for a period of five years and  if so, the details thereof?

## ANSWER

पेĚोͧलयम और Ĥाक ृ Ǔतक गैस मंğी ( Įी हरदȣप ͧसंह पुरȣ )

## MINISTER OF PETROLEUM AND NATURAL GAS (SHRI HARDEEP SINGH PURI)

- (a) to (e):   A statement is laid on the Table of the House.

Statement referred to in reply to parts (a) to (e) of the Lok Sabha Starred Question no. 125 asked by Shri Hanuman Beniwal, M.P. to be answered on 13 th February, 2025 regarding 'Action Plan for Major Oil Marketing Companies'.

(a) & (b):  Public Sector Oil Marketing Companies (OMCs) are Maharatna Undertakings. They are  Board  driven  commercial  companies  and  publicly  listed  entities  who  enjoy  complete operational freedom in their day to day decision making. OMCs work out their short, medium and long term action plans based on decisions of their respective Boards.

Government reviews and monitors performance of these OMCs  through their annual Memorandum  of  Understanding  (MOU)  system  governed  as  per  Department  of  Public Enterprises guidelines, issued from time to time.

(c) to (e): Processes involving tenders and contracts for procurement of Goods and services are commercial decisions of the OMCs and fully within their domain and competence and therefore they take appropriate decisions on them.

OMCs adhere to and comply with rules/regulations/guidelines/standards issued by the Petroleum and Explosives Safety Organization (PESO), Oil Industry Safety Directorate (OISD), Petroleum Natural  Gas  Regulatory  Board  (PNGRB)  and  all  other  statutory  authorities  in  tenders  and contracts.

In the bulk LPG transportation tenders finalized in 2018, various clauses were included, such as the  requirement  for  a  valid  PESO  license,  submission  of  PESO-approved  tank  drawings,  and compliance with safety norms like proper exhaust welding and spark arrestor installation etc.

OMCs have informed the Ministry of Petroleum & Natural Gas that the bulk LPG transportation tenders  issued  by  the  OMCs  in  2018  fully  complied  with  the  MSME  Act,  court  orders  and applicable  regulations  in  force  at  the  time.  Subsequently,  after  finalization  of  contract  w.e.f. 01.09.2018, complaints were received from few transporters regarding alleged misuse of MSE provisions by certain transporters. To address this issue, OMCs instructed the transporters who had bid under MSE category with seven or more tank trucks to get their MSE certificate verified by  MSME  authorities.  Several  transporters  failed  to  comply,  leading  to  OMCs'  show  cause notices for termination of their contract. In response, affected transporters filed cases in the High Court of Delhi. The High Court of Delhi directed the Commissioner of Industries, Government of  National  Capital  Territory  of  Delhi  to  re-verify  MSME  certificates  of  these  transporters. Transporters who obtained re-verification certificates were permitted to continue operations.

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