JAIPUR: The Rajasthan Cabinet on Wednesday decided to take up the issue of alleged indifference of the public sector Oil and Natural Gas Corporation in setting up a well-based oil refinery in Barmer with Prime Minister Manmohan Singh. Chief Minister Vasundhara Raje will seek an appointment with the Prime Minister to discuss the matter.

"This is gross injustice. We will challenge it on all fronts," Ms. Raje told the Cabinet which met here under her chairmanship to discuss various other issues pertaining the State. The Cabinet as an additional item on the agenda had taken up the oil refinery issue, on which Ms. Raje had written to Union Petroleum Minister Murli Deora on Monday.

Though there has been no categorical "no" to the setting up of an oil refinery in Barmer to make use of the crude struck in the Barmer-Sanchore basin by Cairns Energy India Limited (CEIL), the Rajasthan Government is seemingly assuming that ONGC was not keen on the project.

Letter to Deora

In her letter, Ms. Raje pointed out to Mr. Deora that though ONGC board meeting on April 12, 2006, had in principle approved creation of a special purpose vehicle in the name of Rajasthan Refinery Limited for setting up a refinery, the consequent demands from the Corporation in the form of various concessions belied a certain amount of indifference.

Rajasthan Petroleum Minister Laxminarain Dave said that by taking away the crude produced in Rajasthan to some other place for processing the State would be deprived of 1-lakh jobs and income from taxes and other by-products. "Rajasthan is a poor State frequented by droughts. For once the nature has shown some kindness to its people," Mr. Dave observed.

"The Centre is discriminating against Rajasthan as the BJP is in power here," said Rajendra Singh Rathore, Minister for Parliamentary Affairs, briefing journalists on the Cabinet decisions. In the case of Madhya Pradesh, Punjab and Orissa, where refineries had been set up in the past, such demands for concessions were not made, he added.

Fact sheet on the issue

"The refinery is of Rs.12,000 crores while the concessions sought was Rs.21,000 crores," Mr. Rathore said. The Government would come out with a fact sheet on the oil refinery issue at the next Cabinet meeting, due in Kota on January 24, he added.

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