Breaking News

You are here » Indian-Commodity  :  Economy  :  Dharmendra Pradhan rules out giving statutory powers to DGH


Dharmendra Pradhan rules out giving statutory powers to DGH

Virtually ruling out giving statutory powers to upstream oil and gas regulator, the Directorate General of Hydrocarbons (DGH), the Oil minister Dharmendra Pradhan has said that the oil and gas sector has not fully developed and needs government support. Various committees have suggested creation of an independent, statutory regulator for the upstream oil sector. The DGH is a technical arm of the oil ministry which overseas upstream oil and gas exploration and production activities.

Talking further on the demand for DGH to be made a statutory body like market regulator SEBI, Pradhan stated that the sector has not developed fully and still looks at the government for reforms. He said 'Does a sector which has not developed fully, a sector which expects government to do reforms, should be talk of that.' He added that it was not right to put 'jargons' like statutory regulator for the sector.

There are two regulatory bodies in the oil and gas sector - the Petroleum and Natural Gas Regulatory Board, which is a regulator for the downstream activities like laying of pipelines and fuel marketing but without powers to review pricing. The DGH currently manages petroleum resources besides monitoring production sharing contracts (PSCs), and assists the government in auctioning oil and gas exploration fields. It is manned by staff drawn on deputation or tenure basis, mainly from state-owned firms like Oil and Natural Gas Corporation (ONGC) and Oil India (OIL).

The government's recent Integrated Energy Policy noted that the present upstream regulation provided by the DGH was 'neither independent nor comprehensive in a technical sense' and the 'current arrangement needs to be strengthened and made independent'. Moreover, a committee, headed by former finance secretary Vijay Kelkar in 2013, had recommended hiving off the DGH's financial oversight function and vesting it with the income tax authorities. Parliamentary standing committees too have recommended an independent upstream regulator.

Related News

View all news

India's CAD widens to 2.9% of GDP in Q2FY19 on higher trade deficit

Raising concerns over India's fiscal position, the Reserve Bank of India (RBI) in its preliminary balance of payments (BoP) data has showed that the country's current account deficit (CAD) widened to 2.9%......

Finance Ministry extends last date for filing annual GST returns till March 31

In a relief measure for trade and industry, the Finance Ministry has extended the last date for filing annual Goods and Services Tax (GST) return forms by three months until March 31, 2019.  The......

India's growth performance 'very solid' over past four years: IMF Chief Economist

Praising the fundamental economic reforms like the Goods and Services Tax (GST) and the Insolvency and Bankruptcy Code (IBC) carried out by the government, International Monetary Fund's (IMF) Chief Economist......

Top News

View all news

Arrow Greentech's arm gets approval to manufacture mouth dissolving strips

Arrow Greentech's wholly owned subsidiary (WOS) company -- Avery Pharmaceuticals, also known as Arrow Rx has received an approval for site plan to manufacture mouth dissolving strips from Food &......

Essel Propack issuing commercial papers worth Rs 50 crore

Essel Propack is issuing Commercial Papers (CPs) for Rs 50 crore on private placement basis and will have date of maturity as March 13, 2019. The CPs for Rs 50 crore with date of maturity as December 13,......

Escorts, Kubota join hands for global leadership

Escorts and Kubota Corporation have joined hands for their global joint venture (JV) to manufacture high end technology tractors for domestic and export geographies. The JV will leverage leading Japanese......