Jaipur: Having refinery at the Barmer is still a distant dream for people in Rajasthan, the state which is the second largest producer of oil in the country. Though the state government has already finalised a deal with Bharat Petroleum Corporation Ltd. (BPCL) to sell the oil produced, but ironically they haven’t been able to find a company that would setup a refinery.

This issue has been raised by the Chief Minister Ashok Gehlot with the central government who has met the Prime Minister as well as the Petroleum Minister in this regard.

Gehlot had also highlighted the issue in the state budget apart from accepting the report of Triphati committee.

To set up the refinery, state government had talks with ONGC (Oil and Natural Has Corporation) and Vedanta, but nothing concrete could come out.

Few days back, the state government officials had a detailed discussion on the Rs 20 crore project with the ex- ONGC chairman and other representatives of the public sector behemoth.

According to sources, ONGC has placed its conditions including sale tax, interest free loan among other things before the state government.

Vedanta too has shown keen interest to setup the refinery and the issue has been discussed with the state government.

Oil production in Barmer region started in August 2009. Crain started pumping out the oil.
1.25 lakh barrels of oil is produced in the Barmer basin on a daily basis and in the near future the production will increase to 2.40 lakh barrel per day.

It is noteworthy that Rajasthan is second in terms of oil production in the country after Maharashtra, which pumps 2 lakh barrel of oil everyday.

As per estimate, the Barmer basin has sufficient oil, which can be explored for next 40 years.

(JPN Bureau)