MoU for Barmer refinery to be signed in April: Vasundhara Raje Viability

JAIPUR: The Opposition's repeated attacks over delays in setting up the Barmer refinery seem to have had an impact on Vasundhara Raje government.
On Thursday, the chief minister announced that a new MoU for the refinery would soon be signed with the Hindustan Petroleum Corporation Ltd (HPCL) at the ongoing Budget session. Breach of privilege motion against Dy Oppn leader, P 2 The announcement was made as the House passed the Budget and the assembly adjourned sine die.
“We had to bargain strongly and renegotiate the deal to ensure benefits for the state,“ said Raje, adding that the MoU with HPCL would be signed by next month.
The announcement was made while she was giving the reply before passing the Rajasthan Appropriation Bill 2017 and the Rajasthan Finance Bill 2017.
In March 2013, HPCL had signed a MoU with the Rajasthan government for set ting up a 9-million tonnes refinery-cum-petrochemical complex in Thar desert near the oil discovery made by Cairn India. After coming to power, the Raje government had put on hold the fiscal incentives for the project. “The Opposition had attacked us time and again over the refinery. We did not want to take a hasty decision. We were not waiting for elections either to make an announcement,“ she said, accusing the former Congress government of rushing to make an announcement over it in 2013 for electoral gains.
“We renegotiated with the same company again and brought down the viability gap funding (VGF) agreed to by the previous government, from Rs 3,736 crore annually to Rs 1.123 crore. This is to be paid for five years by the government. We have reduced the total VGF by two-third. Instead of Rs 56,000 crore, the VGF to be paid will now be Rs 16,835 crore,“ she said.
Raje informed the house that the amount of Rs 3,871 crore that was to be given as 26% equity has been reduced to Rs 3,738 crore. She pointed out that this has been done despite the cost of the project escalating from the initial amount .“The details of the project will be worked out.The new MoU will be signed soon,“ she added.
Quoting the CAG report, she lashed out at the Congress, and said the capital expenditure in the state during 2014-15 and 2015-16 was Rs 6,623 crore more than 2011-12, 2012-13 and 2014-15, when the Opposition was in power.“This has been done without making any populist announcements,“ she claimed.