BW Communities

DGH May Be Hived Off As Independent Body

BW Online Bureau Nov 08, 2014

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[A Committee of Secretaries (CoS) under the chairmanship of Cabinet Secretary Ajit Seth, in principle has agreed to reconstitute the Director General of Hydrocarbons (DGH), as an independent technical attached office of Ministry of Petroleum and Natural Gas (MoPNG). This has been a contentious issue. But the Committee on Allocation of Natural Resources (CANR) has suggested that reconstitution of DGH will bring in two separate functioning. Sources in the MoPNG ministry said: "It would help the regulator to focus on regulatory functions."  The matter will be soon taken up by the CoS again for a final recommendation to the Cabinet for its approval. At the last meeting of CoS held a fortnight ago, MoPNG and Department of Economic Affairs (DEA) wanted to come back with a detailed proposal, hence the matter was deferred till next meeting. As per the suggestion of CANR, the CoS has decided, that an inter-ministerial group led by DEA, would study the international best practices and identify the functions that could possibly be hived off to an upstream regulator. The inter-ministerial Group will submit its report by December 2011. MoPNG has agreed to this proposal. "We want to have an independent regulator, but, there cannot be separate appointing body," says a top official in MoPNG. The matter assumes significance following the Ashok Chawla committee's final report was submitted in May 2011. A Group of Ministers (GoM) on corruption chaired by Finance Minister Pranab Mukherjee, had suggested the creation of a new statutory body for appointing regulators for major sectors. Officials who attended the meeting of CoS last fortnight said CANR reiterated the points made by the Chawla committee. It had stressed importance of independent regulator for increased transparency in the allocation of natural resources.  "CoS cannot ignore the Chawla committee report recommendations," said a one of the Secretary who attended the meeting of CoS.  However, the Secretary was non-committal, if CoS would agree to the Chawla committee suggestions, to take away the power to appointment regulator, from administrative ministry responsible for the sector. Chawla Committee was also categorical about recruiting from outside administrative and secretarial staff working in the regulatory body. Currently, most of the administrative and secretarial staff in DGH is from the Ministry of MoPNG and public sector major Oil and Natural Gas Commission (ONGC).