New Delhi, Nov 26 :    New Delhi, Nov 26:  Indian Oil Corporation (IOC), once rated as the jewel in India's corporate crown, faces an uncertain future. With the top management remaining divided over many sensitive issues and the boss, M. A. Pathan, failing to hold them together, IOC may not be in a position to redefine its role in a deregulated market. There are two warring factions in the top brass, acknowledged a director. The ministry of petroleum and natural gas, instead of provding direction to the premier PSU, is doing everything possible to rein it in. Minister Ram Naik's decision that the government retain 51 per cent equity in IOC is seen by industry circles as beginning of the process of undermining it. Naik is seeking to accomplish what Arthur D Little failed to achieve through its recommendations to split up IOC, say sources. Gas Authority of India Ltd (GAIL) enjoys a monopoly over the gas market and by virtue of its control over the pipeline network it will not be possible for any rival, both Indian and foreign,to pose any serious challenge to its position. Similar is the case with Oil and Natural Gas Corporation (ONGC) whose upstream leaderhip will remain unchallenged as not many private companies will like to enter this high risk area. Multinationals have been shying away from exploration activity as India is not perceived to be prolific in hydrocarbon deposits. In comparison, IOC faces challenges from many quarters. The domestic giant, Reliance Petroleum Ltd (RPL), may be on par with it in refining capacity in the next two or three years. RPL came up with a 27 million ton refinery without the requisite licence, but the government delicensed the refining sector as the project reached the penultimate stage. RPL may enter marketing as well. Oil major Shell and Kuwait's national oil company, KPC, are preparing to enter the domestic retail market. Essar and MRPL will also emerge as rivals at a later stage. The superannuated senior and middle-level executives of IOC and other downstream PSUs invariably land up in these private ventures. in fact, by the time they enter the board, they begin hobnobbing with rival companies to secure a job after superannuation. There are allegations in IOC that major policy decisions are leaked out to rivals as soon as the board meeting is over. Sources say this is inevitable in a system where the take-home pay of a director and that of a driver is more or less the same. While its rivals will be guided strictly by commercial interests, IOC's decisions will continue to be influenced by politicians and burueaucrats. IOC's recent decision to sign an MoU with Enron for marketing imported gas on the West Coast saw former petroleum secretary, S. Narayan cry foul. A couple of years ago, IOC decided to double the licensed capacity of Paradeep refinery project from six million to per annum to 12 million tonnes per annum. This was questioned by then joint secretary, Nirmal Singh, who pruned it to 9 million tonnes. Later,the public investment board ruled that the project would not be viable on account of its low capacity. There are and there will be innumerable such instances of bureaucrats and politicians fooling around with the fortunes of IOC. Rival companies cannot foray into the Indian market unless IOC is weakened. However, the process seems to have begun, say oil industry circles. If the government is keen to retain it as the downstream flagship company, then it calls for a different strategy altogether, they reckon.