Rajasthan Govt to take 26% Stake in Barmer Refinery: Deora

The Rajasthan government plans to take 26 per cent stake in a refinery proposed to be set up in that state by Oil & Natural Gas Corp (ONGC), media reports quoted Petroleum Minister Murli Deora as replying to questions in the Rajya Sabha (Upper House of Parliament) on Tuesday. The Rajasthan government is keen on setting up a 9-12 million ton per annum refinery at Barmer since Cairn India found 6.5 billion barrels of oil reserves in the Thar Desert. The Barmer field could add 240,000 barrels per day to the country's total oil production once the plateau output is achieved. ONGC floated the proposal for a wellhead refinery in Rajasthan as it owns 30 per cent stake in the Cairn oil field. However, the state-run oil major is demanding fiscal concessions from the state government before it begins work on the project.
ONGC has informed that a decision on setting up the refinery would be based on a detailed feasibility study and financial appraisal, bankable marketing agreement for off-take of products and adequate fiscal incentives from the state government to meet the viability gap, Deora said. ONGC is negotiating with the state government on the feasibility of setting up the refinery. The state government is also discussing with Indian Oil Corp (IOC) and Bharat Petroleum Corp (BPCL) for the sale of petro-products from the refinery.