Lok Sabha Question No. 1198 (UNSTARRED), answered on 2015-12-07
Subject: Navaratna Status to Oil Companies
Ministry: PETROLEUM AND NATURAL GAS
Asked by: ANTO  ANTONY

## LOK SABHA UNSTARRED QUESTION NO. 1198 TO BE ANSWERED ON 07.12.2015

## NAVARATNA STATUS TO OIL COMPANIES

## 1198. SHRI ANTO ANTONY:

## पैट्रोल ियम व प्राक ृ तिक गेस मंत्री

Will the Minister of Petroleum and Natural Gas be pleased to state:

- (a) the  salient  features  of  Navratna  companies  along  with  number  of  Navratna companies working under the Ministry of Petroleum and Natural Gas;
- (b) whether  the  Oil  Marketing  companies  are  included  as  Navaratna  companies status and if so, the details thereof;
- (c) whether these Navaratna companies are selling their product at below the cost and if so, the details thereof and the reasons therefor; and
- (d) whether  the  Government  has  given  any  financial  assistance  to  these  companies and if so, the details of financial assistance given to the said companies during the last three years and the current year, company-wise?

## ANSWER

पैट्रोल ियम व प्राक ृ तिक गेस मंत्रािय में राज्य मंत्री (स्विंत्र प्रभार) (श्री धमेन्द्र प्रधान)

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (INDEPENDENT CHARGE) (SHRI DHARMENDRA PRADHAN)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(a) As  per  DPE  OM  No.  DPE/3(2)/2001-Fin  dated  15th  March  2002,  criteria  for  grant  of Navaratna status is as follows:

- The entity must have Miniratna Category - I status along with Schedule 'A' listing.
- At least three 'Excellent' or 'Very Good' Memorandum of Understanding (MoU) ratings during the last five years.
- And  a  composite  score  of  60  or  above  out  of  possible  100  marks  in  the  six  selected performance parameters, namely:
1. Net Profit to Net Worth,
2. Manpower cost to cost of production or services,
3. PBDIT to capital employed,
4. PBIT to Turnover,
5. Earnings per Share, and
6. Inter-Sectoral comparison based on Net profit to net worth

There are four Navaratna companies working under Ministry of Petroleum and Natural Gas  viz.,  Bharat  Petroleum  Corporation  Limited  (BPCL),  Hindustan  Petroleum  Corporation Limited (HPCL), Oil India Limited (OIL) and Engineers India Limited (EIL).

(b) Yes. Two Oil Marketing companies are included as Navaratna companies viz. BPCL and HPCL.

(c) :     Refining of crude oil is a process industry, where crude oil constitutes around 90% of the total cost. Crude oil is processed through several processing units. Each of these units  produces  intermediate  products  streams,  which  require  further  reprocessing  and blending.   As  it  is  difficult  to  apportion  the  total  cost  amongst  individual  refined products,  product-wise  costs  are  not  identified  separately.  Prices  of  Petrol  and  Diesel have been deregulated.

(d) :      The Government has been modulating the Retail Selling Price (RSP) of sensitive petroleum products viz., PDS Kerosene and Subsidized Domestic LPG. After launch of DBTL, its consumers get the LPG cylinders at market determined price and receive LPG subsidy  directly  into  their  bank  accounts.  Under  the  Burden  Sharing  Mechanism,  the Government  has  provided  cash  assistance  to  two  Navaratana  Oil  Companies  namely, HPCL and BPCL during the last three years and current year as under:

(Rs Crore)

|         |    HPCL |    BPCL |
|---------|---------|---------|
| 2012-13 |  627.89 |  601.95 |
| 2013-14 | 1970.48 | 1448.47 |
| 2014-15 | 1053.4  | 1024.36 |
| 2015-16 | 3775.13 | 3631.86 |

*****