Jaipur, March 19 (IANS) Prime Minister Narendra Modi was Thursday urged to intervene in a stalled nine MMTPA refinery project in Rajasthan that the present BJP government says is a case of "cheating" the public.
"The refinery is a big project that would contribute in the development of the state. The refinery will not only give economic benefits to the state but will also provide employment to thousands of youth. By delaying its construction, the state government is crushing the interests of the state due to political rivalry," former chief minister Ashok Gehlot of the Congress said in a statement.
The former chief minister said that the refinery was to be established by HPCL-Rajasthan Refinery Ltd. (HRRL) - a joint venture company of HPCL and the government of Rajasthan.
"HPCL is a central government undertaking still the present government is misleading people by repeatedly saying that the share agreed by the earlier Congress government is a pact of loss since the land, water and oil belong to the state. Whereas the fact is that the state government will fully recover the amount for land and water from the project. The state government will have a contribution of Rs.200 crore in the refinery in lieu of the land to be given for the project," he added, urging Modi to get the project off the ground.
However, the present chief minister, Vasundhara Raje, has a different take on this.
Raje, while replying to the debate on state budget recently, said: "Despite the state contributing double the amount of the total cost of this project, its share was limited to merely 26 percent. Against the total cost of Rs. 37,400 crore, the state commited to pay Rs. 56,400 crore in (the shape of) cash, water, roads and 4,800 acres of land at a nominal cost of Rs. 300 crores only."
"This way, it was a failed deal. Eyeing immediate benefits during the elections, the then state government decided this case of investment in just 30 hours. No financial and economic analysis was done for this project," she added.
Gehlot's government had entered into a Memorandum of Understanding (MoU) with HPCL for establishing the refinery-cum petrochemical complex at Barmer district at an estimated cost of over RS 37,230 crores in March 2013. A JV agreement was signed in July 2013 between HPCL and the state government.
The proposed refinery was to be a subsidiary of HPCL, whose equity share was to be 74 percent, while 26 percent was to be held by the state government. The project cost was proposed to be sourced with a debts/equity ratio of 1.5:1. The total equity component was Rs.14,892 crore and the debt was Rs.22,338 crore.
HPCL's equity contribution was put at Rs.11,020 crore and the state government's at Rs.3,872 crore.
Incentives in terms of an interest-free loan for 15 years were considered to be provided by the Rajasthan government to HPCL.
As per the terms and conditions, every year, an interest free loan of Rs 3,736 crore was to be provided by the state government to the JV for 15 years beginning from the year commercial production commenced at the refinery.
The Raje government felt that the incentive to be provided by theAstate government was very high and may adversely impact the state's economy.
Nobel auction to help Ukrainian children: Russian journalist raised $ 10.35 million with this, appealed for help to the victims
The Russian army has wreaked havoc in Ukraine that has forced millions of people to leave their homes and flee. A large number of children are also included in this. Aid funds are being raised from
Finance Ministry: Government can raise Rs 16000 crore through green bonds, which will get final approval soon
The central government may soon issue sovereign green bonds. The Finance Ministry has finalized its framework according to the global standard. Rs 16,000 crore can be raised by issuing green bonds
North Korea will expand military exercises and strengthen war preparations, dictator Kim Jong Un ordered
North Korean dictator Kim Jong Un has ordered the country's military drills to be expanded and war preparations strengthened. Kim Jong Un has taken this decision regarding the growing tension with
Big action in Atiq-Ashraf murder case, 5 policemen including Shahganj Inspector suspended
Shahganj police station in-charge Ashwani Singh, outpost in-charge Nivan Preet Pandey, sub-inspector Shiv Prasad Maurya, constable Jaymesh Kumar and constable Sanjay Prajapati have been suspended in
Rozgar Mela: PM Modi distributed appointment letters to 51 thousand youth, said- New India is doing wonders today
Rozgar Mela: Prime Minister Narendra Modi today distributed appointment letters to 51 thousand youth through video conferencing. During this, he said that the new India is doing wonders and the
Have to keep repeating what we are doing: Dhoni
Melbourne, March 19 (IANS) After winning their World Cup quarter-final against Bangladesh, Indian skipper Mahendra Singh Dhoni on Thursday said his team has to keep on repeating the right things
Mahadev Betting App: Owner Ravi Uppal caught in Dubai on Interpol notice; ED trying to extradite him to India
Ravi Uppal, accused in the case of illegal betting and money laundering, has been detained in Dubai. The Enforcement Directorate (ED), which is investigating this scam worth crores of rupees, is
Brahmastra Trailer Release: Ranbir Kapoor will fight for his weapons between Isha and Shiva's love story, the film's trailer will make you shocked
Brahmastra Trailer Release: The trailer of director Ayan Mukerji's most awaited film 'Brahmastra' has finally been released after a long wait. This film of Bollywood actress Alia Bhatt and actor
Now the candidates will not be forced to wear shoes and socks in the UP board examination, strict instructions given to the center administrators
Because of the inconveniences being faced during the search in the High School and Intermediate examination of the year 2022 of the Uttar Pradesh Board of Secondary Education (UP Board), some relief
Thalaivar 171: Shirt open, four gold watches in his hands, stylish Rajinikanth in the look of 'Thalaivar 171'
Thalaivar 171 First Poster: Filmmaker Lokesh Kanagaraj, who has given blockbuster films like Master, Vikram, and Leo, is in the news for South cinema superstar Rajinikanth starrer film Thalaivar 171.