New Delhi, Aug 8 (IANS): A Parliamentary panel has suggested that the Petrochemicals Division of the Chemicals and Fertilisers Ministry should be shifted to the Petroleum Ministry, as it would benefit both the sectors and lead to better policy formulation.

The Parliamentary Standing Committee on petroleum and natural gas, in its report, which was presented in both Houses of Parliament on Tuesday, made this suggestion on the basis of the fact that ever since the Petrochemicals Division was transferred from the Petroleum Ministry to the Chemicals and Fertilisers Ministry on June 5, 1991, the industry has expanded tremendously and is on the way of becoming a major petrochemicals hub of the world.

The oil marketing companies too have also become large, diversified and integrated.

In this context, the panel has suggested that the transfer of Petrochemicals Division from the Ministry of Chemicals and Fertilisers to the Ministry of Petroleum and Natural Gas will benefit both the petroleum and petrochemicals sectors through better policy formulation and implementation and also help in utilising the synergies between two sectors.

"As the refineries need various sanctions, approvals, clearances, etc, it will be better if the departments are under the same ministry. The committee recommends the Petroleum Ministry to examine the expediency of transfer of Petrochemicals Division from the Chemicals and Fertilisers Ministry to the Petroleum Ministry."

It further said that if the proposal is found to be beneficial then it should be taken up with the Cabinet Secretariat for amendment of Allocation of Business Rules of the Government of India.