Rajasthan CM Demands Oil Refinery in State

Rajasthan Chief Minister(CM) Ashok Gehlot asked the Centre to set up an oil refinery in the state and sought Prime Minister Manmohan Singh''s intervention for allocation of coal to the state to facilitate smooth operation of thermal power plants located there. At a meeting with Singh here, Gehlot stressed that Rajasthan is the only major state in the country without an oil refinery and setting up one there would ensure more employment and development in the region. "During the meeting, Gehlot informed the Prime Minister about the commercial production of crude oil which commenced in Barmer in year 2009. Presently 1.25 lakh barrels oil per day is being produced which is likely to increase to 1.5 lakh barrels per day," an official release here said. Rajasthan has already given its nod to a 4.5 to 6 MMTPA (Million Metric Ton Per Annum) refinery in Barmer in the first phase. Reiterating that the state government has accorded top priority to the power sector in last two years, the Chief Minister informed the PM that problem is being faced by these projects due to lack of availability of coal.
Prime Minister Manmohan Singh on Thursday assured support to the Rajasthan government in setting up a refinery at Cairn-operated Barmer oilfields , raising speculation that the cabinet may include it as an additional condition for approving the $9.6-billion Cairn-Vedanta deal. Rajasthan chief minister Ashok Gehlot, who met the Prime Minister on Thursday, confirmed that that Singh had assured his support to the refinery project. "I have told him that the state has agreed to give all fiscal concessions besides making a 26% equity contribution ," said Gehlot.