The advisory committee on 'Synergy in Energy', headed by V Krishnamurthy, suggested a national shareholding trust modelled after the Singapore and Malaysian model be constituted to hold government stake in oil PSUs.
"The oil PSUs which will join the trust will continue to retain the PSU character and the trust will function as a non-profit trust set up under the Societies Registration Act or under the Companies Act," the six member committee recommended.
Petroleum Minister Mani Shankar Aiyar had constituted the committee with the idea of minimising overlapping of interests and curtailing destructive competition.
The idea was to merge smaller companies like BPCL, HPCL in ONGC and OIL in IOC to create two behemoths capable of facing international competition.
The committee suggested the need for an integrated energy policy, setting up of cabinet committee on energy under the Prime Minister and setting up of energy ministry.
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