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BJP to back Naik on petrol pump issue

BS Political Bureau in New Delhi

The Centre will defend Union Petroleum Minister Ram Naik to the hilt against the charge that he had favoured Bharatiya Janata Party and Rashtriya Swayamsevak Sangh members in allotting petrol pump dealerships.

Naik spoke to Prime Minister Atal Bihari Vajpayee and Deputy Prime Minister LK Advani on Friday and said the allotment of petrol pumps was "above board and transparent" and that he had done nothing illegal.

But there is a background. Naik has been at the receiving end in many meetings of the BJP parliamentary party for not favouring party workers in allotment of petrol pumps. About four months ago, prominent BJP leaders from Delhi, Uttar Pradesh and Bihar, including Madan Lal Khurana and Kirti Azad, had openly accused him of ignoring party workers in this regard.

On the contrary, during parliamentary standing committee meetings, he was criticised by Samajwadi Party chief Mulayam Singh Yadav for favouring BJP workers in the allotments. Naik had told both the groups that he had no role in the exercise because he did not have any discretionary quota.

Naik's supporters are thus arguing that there is no question of his resignation. Naik says he is on a strong wicket because petrol pump allotment is handled by the dealers' selection board and he has no role to play there.

Senior BJP leaders said the issue, if dragged, could cause embarrassment to many Opposition leaders who also had been beneficiaries in the process. Naik has told his party that he can produce recommendation letters for allotments by senior Opposition leaders.

However, the entire episode would cause more political embarrassment to the government because it flies in the face of the BJP's claim of being a "party with a difference". With Assembly elections in 10 states around the corner, the Congress is determined to beat the BJP hollow during the poll campaigns on every possible opportunity.

The Opposition is expected to demand a full discussion on the issue in Parliament on August 5.

On Friday in both the Houses, the entire Opposition showed unity on the issue. Senior Congress leader Arjun Singh, SP leader Amar Singh and Rashtriya Janata Dal chief Laloo Prasad Yadav demanded Naik's resignation on "moral ground". While Amar Singh demanded a CBI probe, some members even asked for setting up a joint parliamentary committee to probe the issue.

'Selection process prone to political manipulations'

While the four oil marketing companies maintain that the composition of dealer selection boards makes it impossible for them to influence the selection of petrol or LPG dealers, privately they admit manipulations are on.

"This was the reason for the government staying the working of 11 dealer selection boards in May 2001, following allegations of irregularities in the selection process," points out a senior industry official.

In June 2000, the government reconstituted all the 58 dealer selection boards to make their working more efficient and transparent. These boards were disbanded in January 2000 following charges of malpractices.

The boards, which were responsible for the selection of candidates for allocation of retail outlets for petrol and diesel, LPG agencies and kerosene distributorships, were headed by a retired district or a sessions judge or a retired high court judge. Besides, there were two government-nominated official members, of the rank of general managers, on these boards.

As per the new arrangement, the official members were changed in every meeting and were told about their nominations only 24 hours before the board was to meet. This was expected to eliminate the scope for manipulation.

One of the official members was from Indian Oil Corporation and the other from the company whose outlet or LPG agency was being awarded. In the case of IOC dealership, while one official member belonged to the company, the other one came from Bharat Petroleum Corporation Limited. While the board chairman had the powers to award 200 marks, the members could award 100 marks each.

Ironically, the boards were disbanded by Petroleum Minister Ram Naik following allegations that some of the boards were not functioning in an impartial manner and were prone to political and other pressures. Naik is now facing the charge that he helped his party members corner most of the dealerships awarded during his tenure.

(With additional inputs from Pradeep Puri in New Delhi

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