Tackling Oil Pool Account Deficit – A Challenging Task on Debut

With the upward spiraling crude prices and non-revision of petroleum prices in the country since 1993, the deficit of the Oil Pool Account (OPA) of Government rose to an alarming level of over Rs.10000 crore. Unable to bear the financial burden, all the public sector oil companies went clamouring for immediate reimbursement of payments due from the OPA. Unless the petroleum product prices were increased immediately, the flash point would be reached and the Oil Pool Account would collapse leaving the premier oil companies of India in shambles due to surmounting losses.

It was against this backdrop that Baalu took over the onerous responsibility as the Indian Petroleum Minister. But knowing Baalu for his dynamism and zeal for work, rigorous consultations with his ministry’s team headed by Dr. V.L. Kelkar, then Petroleum Secretary and a renowned economist, Chief Executives Officers of the oil companies and eminent persons like Dr. Raja Chelliah followed to address the issues facing the Ministry. The Minister in T.R. Baalu was clear. The strategy had to be multi-pronged indeed so that the health and growth of a vital industry of the Nation could be restored. He would often seek sagacious advice of his mentor and the then Minister of Industry at the Center, Thiru Murasoli Maran almost every day. While visiting Chennai in the weekends, he would invariably call on the Tamil Nadu Chief Minister and the Party leader Kalaignar and seek his advice on these burning issues.

Through a combination of different measures, he was able to tackle the problem of the Oil Pool Account deficit effectively.