Vedanta Resources, which recently picked up a controlling stake of 58.86 per cent in Cairn India, now wants to participate in the proposed 9 million tonnes a year refinery in Rajasthan.
The Vedanta Group’s Chairman, Mr Anil Agarwal, called on the Chief Minister of Rajasthan, Mr Ashok Gehlot, in New Delhi. The Vedanta Chairman told the Chief Minister that his company would support the refinery by picking up a ‘small stake’ in the project.
“Mr Agarwal discussed the issue of the proposed refinery in Rajasthan. With a positive gesture, he expressed his interest in participation in this ambitious project,” said a statement issued by the Rajasthan Government on Saturday.
Currently, Cairn India is pumping out 175,000 barrels of oil per day from Barmer fields in Rajasthan. The State is aggressively pushing for a refinery in the vicinity of Barmer. Public sector companies ONGC and HPCL have already evinced interest to join hands for project.
The Rajasthan Government said that HPCL, ONGC and other agencies are actively participating in discussion with the State and “we are hopeful for positive outcome of these efforts”.
At the same time, Mr Agarwal also discussed the need for continuing exploration to achieve the target of three lakh barrels a day from Barmer. At this production level, Rajasthan will meet almost 50 per cent of country’s domestic crude oil production, the statement said.
In August 2009, the Rajasthan Government constituted a committee, headed by former Petroleum Secretary, Mr S.C. Tripathi, to do a feasibility study for setting up a refinery to process crude oil mined from Barmer.
The panel recommended that the State Government should have 26 per cent equity in the refinery and rest by oil companies. It may also offer a concession of $1 a barrel from Cairn India.
The State accepted Mr Tripathi’s committee recommendations. At the same time, a proposal to offer interest-free loan for 15 years, starting 2016-17 to 2030-31, for repayment in equal annual instalments over 16 years — from 2031-32 have been mooted.
siddhartha.s@thehindu.co.in