Rajasthan govt keen to take 26% stake in ONGC refinery

The Rajasthan government is keen to take a 26 per cent stake in a refinery proposed to be set up in the state by Oil and Natural Gas Corporation (ONGC).

“ONGC has informed that the government of Rajasthan has indicated to take up 26 per cent equity stake in the proposed refinery,” Petroleum Minister Murli Deora said in a written reply to a question in the Rajya Sabha here.

The Rajasthan government has been pressing for a 9-12 million tonnes per annum refinery at Barmer, ever since Cairn India found 6.5 billion barrels of oil reserves in the region. The Barmer field, according to Cairn India, can add 240,000 barrels a day (12 million tonnes a year) to the country’s total oil production once plateau output is achieved.

“However, ONGC has informed that a decision on setting up of the refinery would be based on a detailed feasibility study and financial appraisal, bankable marketing agreement for offtake of products and adequate fiscal incentives from the state government to meet the viability gap,” Deora said. ONGC is in consultations with the government of Rajasthan on the feasibility of setting up a commercially viable refinery at Barmer, he said.