This Thursday, the representatives of HPCL (Hidustan Petroleum Corporation Ltd.) and Rajasthan government held a meeting to finalize the draft of Barmer refinery project that was pending since a long time. The meeting was presided over by officials from the Union Ministry of Petroleum. Former CM Ashok Gehlot had contested 2013 elections on free doles and ‘multimillion’ development agenda. Barmer refinery was one of his ambitious projects that promised employment and investment opportunities to Rajasthan natives.
Following a shift in the power from Gehlot to Raje in 2013, it was revealed that the multi-million refinery was nothing but a master stroke by Gehlot to eliminate MP Sonaram from scene, contain resentment among Jat communities and to provide benefits to specific people under the pretext of buying ‘benami land’ in Pachpadra. Besides, the deal wasn’t economically viable for people, considering that it laid tremendous burden on state exchequer and the government’s profit share wasn’t feasible.
Also Read: CM Vasundhara Raje to Sign an MoU for Barmer Refinery Project this April
Following several rounds of renegotiation with HPCL representatives, Raje brought down the VGF (Viability Gap Funding) in loan amount from Rs. 3,736 crores to Rs. 1,123 crores per year. With the reduction in overall VGF, the total amount paid by Rajasthan government to the HPCL officers is Rs. 16,835 crores instead of Rs 56,000 crores. The government will pay this amount to the organization over a period of 5 years, in addition to an extra amount of Rs. 3,871 crores. It would be given as 26% equity to the company.
All points related to the Barmer refinery MoU (Memorandum of Understanding) were discussed in the meeting. The drafting process is complete and the agreement was finalized. The draft will be put forth before the HPCL, union ministry and the highest level of government. However, the officials are tightlipped about the date of signing and the whether the signing ceremony will be held in New Delhi or Jaipur. The HPCL CMD Mukesh Kumar Surana and Joint Secretary of refineries Sandeep Poundrik were in discussion with chief secretary O.P. Meena.
The much-awaited Barmer refinery project was expedited after Rajasthan CM Vasundhara Raje promised that a new MoU would be signed soon. The announcement was made in the assembly on March 30. Staying true to their word, the government renegotiated the clauses of the contract and bargained it terms with HPCL officers to ensure that the deal benefits the state. Having cleared major blocks in the refinery project, the government is confident it’ll fetch new prospects of growth and economy for Rajasthan.
