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4-yr delay in Barmer refinery project led to more loss: Gehlot

Press Trust of India  |  Jaipur 

leader today said the four-year delay in Barmer refinery project has led to losses which is far more than Rs 40,000 crore, an amount the claims to have saved by revising the MoU.

State firm and the had yesterday inked a revised MoU of Rs 43,129 crore for an refinery in Barmer district which will produce BS-VI fuel.

Under the new terms and conditions, the refinery cost has come down to Rs 16,845 crore, which was Rs 56,040 crore in the previous MoU done by the in 2013,Union Minister Dharmendra Pradhan had said.

Speaking to mediapersons today, Gehlot said, "There has been loss for the state, delay in employment generation and business loss. The refinery project would have provided a lot of benefits if the work had commenced four years ago."

"The delay has benefitted of Rs 1,500 crore in VAT every year," the former chief minister said, adding the loss to in four years is more than what the government has saved by revising the MoU.

The delay has resulted in losses and the people of the state will not spare the for it, he said.

Gehlot said, "The Union minister was here to announce the revised MoU, but he did not explain how Rs 40,000 crore was saved after renegotiation."

"He did not mention when the project will start making profits. The Union minister should have made the contents of the MoU public," he said.

"Instead of misleading people by presenting partial facts, the minister should direct the to get the both MoUs investigated to let the truth come out, Gehlot said.

"From the revised MoU it is unclear what the Internal Rate of Return (IRR) will be. When the MoU was inked during the rule, RRI was 15 per cent. If the RRI is less in the revised MoU then the state will earn less profit," the Congress leader said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, April 19 2017. 17:22 IST