Rajasthan CM Vasundhara Raje finally gave a green signal to the much-anticipated Barmer refinery project. The announcement was made in her appropriation speech, before the passing of Rajasthan finance bill 2017 and Rajasthan appropriation bill 2017 in the house this week. As per the CM, Rajasthan government negotiated with HPCL (Hindustan Petroleum Corporation Ltd.) representatives for a long time. HPCL finally gave in to government’s persistent requests to amend previous MoU signed by the Congress. The new MoU for Barmer refinery project will be signed this month.
Why did BJP Initially Oppose the Barmer Project?
In past, Cairn India (a private company) discovered oil fields in Thar Desert. HPCL was interested in setting up a refinery with 9-million tonnes capacity near the petrochemical complex in Thar, which is why they signed a contract with former Rajasthan CM Ashok Gehlot in March 2013. When Raje was elected to office in December 2013, she set up a committee for investigating the progress of the pending schemes. During investigation, it was found that Congress had approved a 15-year interest-free loan worth Rs 3,736 crores in the favour of Barmer refinery.
At that time, Rajasthan exchequer was already struggling with a debt of Rs 80,000 crores in DISCOMs. In this case, it would’ve created economic pressure on the state. Therefore, the government didn’t want to rush with the project. After negotiating with HPCL’s team, the government brought down the VGF (Viability Gap Funding) from Rs 3,736 crores to Rs 1,123 crores. The earlier contract required the government to pay Rs 56,040 crores in 15 years. Now, they just have to pay Rs 16,845 crores. Earlier, the Congress agreed to help HPCL with an amount of Rs 3,871 crores (26% equity). With new T&Cs in place, Rajasthan government will allot Rs 3,738 crores for the same.
Raje accused the Congress for introducing Barmer refinery project in Rajasthan during election year for their selfish gains. She pointed out that the BJP has framed the new clauses after thorough research, despite the proposed costs of the project escalating from the initial quote. Currently, the officers are chalking out details of the new MoU, which will be signed soon.
For those who don’t know, Barmer refinery project was one of the four major announcements of Congress government, including Jaipur Metro, Kishangarh Airport and a railway coach factory at Bheelwada. Lashing out at the former Congress leaders, Raje said that capital expenditure for state has escalated in last two years, without making any big, expensive announcements. Last year, the government spent Rs 6,623 crores on developmental schemes. This year, they’re planning to increase this further. With the refinery getting thumbs up by Raje, the state is expected to reap profits from the refinery in next two decades.
