Is the Rajasthan Refinery Agreement Beneficial to the State?
Synopsis
Key Takeaways
- Revised agreement under BJP aims to safeguard Rajasthan's interests.
- Former CM Gehlot claims the project symbolizes state development.
- The refinery's costs have escalated significantly since its inception.
- Nearly 85% of the project was completed between 2018 and 2023.
- Calls for inauguration to commence commercial production are growing.
Jaipur, Dec 30 (NationPress) In a recent statement, Parliamentary Affairs Minister Jogaram Patel responded to comments made by former Chief Minister Ashok Gehlot regarding the Rajasthan Refinery project. Patel asserted that the agreement established during the Congress administration was detrimental to the state's interests, whereas the updated agreement under the BJP regime has effectively protected Rajasthan's rights and advantages.
During a press conference, Patel contended that Gehlot's remarks were merely attempts to attract media attention. He emphasized that if the original agreement with Hindustan Petroleum Corporation Limited (HPCL) had remained intact, the refinery would not have been established, nor would Rajasthan have reaped any significant rewards from it.
“Although land, water, and crude oil are assets of Rajasthan, the conditions of the previous agreement would have offered the state virtually no benefit,” Patel stated.
He explained that after a thorough review of the agreement in 2017, the then BJP-led government renegotiated a new Memorandum of Understanding with HPCL, ensuring the economic and strategic interests of Rajasthan were upheld.
Patel urged Gehlot to juxtapose the Congress-era MoU with the revised agreement before publicly commenting.
Previously, Gehlot had hailed the Pachpadra Refinery as a testament to Rajasthan’s growth and economic prospects. He mentioned that during his second term as Chief Minister, the Congress government made significant efforts to bring the refinery project to fruition.
Gehlot noted that HPCL was initially hesitant to establish the refinery, but after intervention from then Prime Minister Manmohan Singh and UPA Chairperson Sonia Gandhi, Rajasthan secured the project. He reminisced that the foundation stone was laid in Pachpadra in 2013, with Sonia Gandhi and then Union Petroleum Minister Veerappa Moily in attendance.
Gehlot accused the BJP of delaying the refinery project for nearly five years post-2013, resulting in a drastic increase in costs from an estimated Rs 37,000 crore to nearly Rs 1 lakh crore.
He stated that upon the Congress party regaining power in 2018, work on the refinery accelerated, with nearly 85% of the project completed between 2018 and 2023, despite challenges like the COVID-19 pandemic.
During a review meeting in Pachpadra in May 2023, HPCL had assured that commercial production would commence by December 2024, but this target was not met after the BJP returned to power. He also highlighted that the 2025 budget anticipated operational status by August, a deadline that has since been missed.
With reports indicating that the project is nearing completion, Gehlot has called on the state government to inaugurate the refinery soon so that commercial production can begin.