Mr. Mukherjee said in his letter, there has been a series of press reports in the last few days on the approach of the Government on several issues of strategic national importance in oil sector. These reports indicate that notwithstanding the prevailing uncertainty in the stability of the present Government, it is pursuing such proposals with unseemly haste. It has been reported that the Government is seriously considering the proposal to sell-off one of the Navaratna Oil PSUS, most likely Hindustan Petroleum to a combine of Shell and Aramco. The Parliament was informed that marketing rights will be granted to multinational oil companies only on investment of at least Rs. 2,000 crores din creating refining capacity or production of 3 million tones of crude petroleum per year. Selling of Navaratna PSEs to obtain foreign investment has never been brought to the Parliament an intended policy of the Government. From the reports, it is evident that such sell-off of a profitable PSU is neither going to increase refining capacity nor increase crude petroleum output. The record of the oil multinational especially Shell, is one of undue interference in the governance of developing countries. Nigeria is one of the current examples of the worst form of such interference. The reason for giving any kind of consideration to oil multinationals to get a free right into the lucrative Indian market must be discussed in the public interest on the floor of the Parliament before any decision is taken. The public sector is proposed to be handed over on a platter to multinationals with dubious records.

He said, it has been widely reported in the Press that Sengupta Committee has recommended transfer of public sector oil pipelines to Petronet which has been incorporated as a non-Government company. The Committee did not consist of any serving officer of the Government nor were the major oil PSUs represented. The composition of the Committee on such a vital issue is, therefore, suspect. The report of the committee has not been made public although it appears that the Ministry is going ahead with action on the recommendations. The motivations for such destruction of public sector wealth and value cannot serve the public interest and the strategic interest. Once the public sector pipelines are transferred to Petronet with half the equity in the open market, nothing would prevent multinational oil companies wit hoards of funds accumulated by exploiting dozens of developing countries, from buying out the shares in the market and taking control of this pipeline systems. The intention of the Ministry in weakening the profitable public sector oil companies to facilitate entry of oil multinationals is further evident from the moves being made to cut down Indian Oil Corporation (IOC).

 He clearly mentioned, there are several other related issues, all of which lead to a inescapable conclusion of oil multinationals having a free run of the Ministry to capture the high attractive oil market in India at the cost of our strategic and economic interests.