ONGC is likely to be asked to set up a 4.5-6 million tonne refinery in
Rajasthan if the state government agrees to acquire 26 percent stake in the Rs
9,230 crore project.
The Rajasthan Government is mulling to set up a refinery at Barmer after
Cairn India discovered 6.5 billion barrels of reserves that can produce up to
2,40,000 bpd of oil at plateau.
However, ONGC is not keen on the project unless the state government defers
local sales tax or extends an interest-free loan of Rs 1,300 crore per year for
16 years, gives free land and water, exempts crude oil from entry tax/cess/octori
and central sales tax is waived for 16 years.
Also See:
ONGC
identifies 12 CDM projects to generate carbon offsets (10-April-10)