RS Sharma, Chairman, ONGC

I feel, overall, the budget addresses the expectations and the focus has been more on the stability and the futuristic growth especially for the oil and gas upstream sector. I feel this does remove a lot of uncertainties which had been a cause of the major concern like section 80IB the definition of mineral oil, it has clarified from NELP VIII that will include gas.

FBT has been removed which was a major irritant and I feel so far as for this sector. This custom excise they do not seem to have an impact. But, one major thing that has come in the statement is that the product prices – that is one issue that has been agitating the industry consistently. How to regulate the product prices?

So one thing it has come as a policy statement. The product prices i.e. auto fuel as well as cooking fuels need to be more aligned to the international levels and this expert committee that is getting constituted, they will look for examining for a more viable and a sustainable mechanism.

I am very happy at that, that a mechanism would come out which would take care of the whole scenario.

This issue, just increasing prices does not address the concerns in a long-term way. It is quite a complex mechanism and this committee I am sure will look into all the areas – the concerns of the consumers, marketing companies, producers. So they will take into account more a dynamic scenario.

Earlier, when the prices were increased the international crude prices were at USD 70/bbl. Today they have come down to USD 65-66/bbl. There is so much of volatility in these product prices, so there needs to be a mechanism that takes care of the whole scenario of this volatility and the dynamics.

I have been telling that the removal of this deregulating the prices - this was the scenario being talked about when the crude price were in the range of USD 40-50/bbl. Now they have already moved to a substantially higher level. So a more holistic view has to be taken and in that perspective I feel that the policy intent has been clearly given by the Finance Minister that these prices need to be aligned to the international levels and when the committee get constituted they will hear all stakeholders, their point of view and I have been very vocal that this scenario of this product pricing fixation has to take a dynamic view, not a static view.

So I am sure this committee will look into all the areas and they will address all the concerns that will remove the uncertainties. That is more important for the business.