Even before commencing operations, the Barmer refinery in Rajasthan has earned a distinction of sorts. The proposed Rs 43,129 crore project will now have two foundation stones — the first was laid by Congress leader Sonia Gandhi on 22 September 2013, and the second to be laid by Prime Minister Narendra Modi on Tuesday, 16 January.
The 9 million tonne capacity project, which is a joint venture between Hindustan Petroleum Corporation Limited (HPCL) and the Rajasthan government, has been on the cards for the last several years. It has also been at the centre of a political slugfest between the Congress and the BJP.
Project Floated During Congress Rule, But Opposed by BJP
First mooted by the previous Ashok Gehlot-led Congress government in 2013 to produce the BS-III standard fuel, the Barmer refinery project was initially estimated to cost Rs 37,210 crore. A joint venture between the government and HPCL for the project was signed in March 2013, and the foundation stone was laid by Sonia Gandhi in September the same year.
However, Assembly elections were just round the corner at the time, and as the Vasundhara Raje-led BJP government scored a massive victory over the Congress, the project stalled.
Raje reportedly took exception to the terms of the deal negotiated under the Congress-led government, saying that it went against the interests of the state.
According to a Rediff report, Raje also wanted the government’s stake in the joint venture raised from 26 percent.
Last week, Petroleum Minister Dharmendra Pradhan told reporters that the revised plan for the Barmer refinery would lead to Rajasthan saving Rs 40,000 crore. Comparing the earlier plan to the new one, the minister said:
The earlier internal rate of return (IRR) from the project was at 6 percent with a viability gap support of Rs 3,736 crore per year from the state government for a 15-year-period. The IRR from the project is now 12 percent with just Rs 1,123 crore per year viability gap support from the state government. The lower viability gap support and higher rate of return will lead to a saving of Rs 40,000 crore to Rajasthan.
Pradhan went on to accuse the Congress of “using this project as a political stunt” back in 2013, saying that even the required approvals and clearances had not been completed at the time. “They are in place now,” he said.
However, the stake for the Rajasthan government continues to be 26 percent in the current project, while for HPCL, it would be 74 percent.
Notably, talking about the event on 16 January, the Petroleum Minister did not term it foundation-laying and just said that “work on the project will start” in PM Modi’s presence.
Now, Congress Accuses BJP of Delaying the Project
The foundation-laying by the Prime Minister has unsurprisingly led to a backlash from the Congress. Former Rajasthan CM and Congress leader Ashok Gehlot has written a letter to PM Modi questioning the need for another foundation stone being laid for the project.
Meanwhile, Pratap Singh Khachariyawas, the Congress spokesperson in Rajasthan, has blamed the BJP for delaying the project, and was quoted as saying:
The whole point is why did so much delay happen in the project, and that the BJP’s state government is responsible for the delay. Had they started the project soon after it came to power, a lot of development would have happened and people would have got jobs.
Rajasthan’s Assembly polls are likely to be held this year and Lok Sabha bypolls to the Alwar and Ajmer seats would be held on 29 January. Congress has alleged the delay was designed to keep the event closer to the polling season in the state.
Meanwhile, as things stands now, the refinery is slated to be completed by 2022-23, and would be producing the highest grade BS-VI fuel. It would utilise crude oil from not just the nearby Barmer fields, but also from other parts of the country and even abroad transported via pipelines.
(With inputs from PTI)
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