News Release Details
ONGC may reconsider refinery in Rajasthan
New Delhi 15-Jun-2007
OIL major Oil & Natural Gas Corporation {ONGC) has agreed to take a fresh look at the proposal of setting up a refinery in Rajasthan. After declaring the project economically non-viable at the first go, the public sector oil giant is said to be rethinking on scaling down the size of the proposed refinery from 7.5 mmtpa to 3-4mmtpa. Principal secretary, mines & petroleum, Ashok Singhavi, told ET that the talks ended on a positive note. "We are hopeful of setting up a refinery in the state. We will again have a round of talks after reconciling various factors including the downsizing of the refinery, marketing and consumption of the oil products. The state government as well as ONGC will give a fresh look to the concessions demanded earlier by the latter for setting up the refinery," he said. The oil major had earlier demanded free land, exemption from entry tax and sales tax/VAT deferment for 16 years. Other concessions include CST exemption and right of way for rail link. It had also asked for development of raw water and auxiliary facilities for uninterrupted supply of •water at refinery site, duty-free electricity on purchase or self-generated electric power at any time in future "The refinery is worth Rs l2,000 crore while the concessions sought were worth Rs 21,000 crore," Rajasthan mines minister L N Dave said. Now that the size of the refinery is proposed to be reduced, the state government has asked ONGC to chart out a new set of concessions. "The second round of talks will certainly give a direction to the proposal," Mr Singhavi said.
New Delhi 15-Jun-2007
OIL major Oil & Natural Gas Corporation {ONGC) has agreed to take a fresh look at the proposal of setting up a refinery in Rajasthan. After declaring the project economically non-viable at the first go, the public sector oil giant is said to be rethinking on scaling down the size of the proposed refinery from 7.5 mmtpa to 3-4mmtpa. Principal secretary, mines & petroleum, Ashok Singhavi, told ET that the talks ended on a positive note. "We are hopeful of setting up a refinery in the state. We will again have a round of talks after reconciling various factors including the downsizing of the refinery, marketing and consumption of the oil products. The state government as well as ONGC will give a fresh look to the concessions demanded earlier by the latter for setting up the refinery," he said. The oil major had earlier demanded free land, exemption from entry tax and sales tax/VAT deferment for 16 years. Other concessions include CST exemption and right of way for rail link. It had also asked for development of raw water and auxiliary facilities for uninterrupted supply of •water at refinery site, duty-free electricity on purchase or self-generated electric power at any time in future "The refinery is worth Rs l2,000 crore while the concessions sought were worth Rs 21,000 crore," Rajasthan mines minister L N Dave said. Now that the size of the refinery is proposed to be reduced, the state government has asked ONGC to chart out a new set of concessions. "The second round of talks will certainly give a direction to the proposal," Mr Singhavi said.