Don’t Trap Oil PSUs in Subsidy
This refers to the Edit, ‘For a Competitive, Efficient Oil Sector’ (Feb 4). The government’s Budget 2017 announcement for creating a mega oil PSU appears justified. However, clarity does not come from an announcement, and petroleum and natural gas MoS has told TV channels that the PSUs will decide the structure of merging. India would be the third-largest oil and gas consumer in the next decade, and such a move provides more clout to the nation. The government ought to clarify that the PSUs would not be a part of underrecovery or subsidy-sharing mechanism and create true value for the PSUs’ shares.