The Rajasthan government has stopped
work on giving right of user (RoU) for the 580-km pipeline to transport the
crude oil from its Barmer oil fields in Rajasthan to Virangam in Gujarat.
Cairn has sought shifting of the
delivery point so that the proposed pipeline needed for transporting the crude
oil
to Gujarat coast can be included in the cost for developing the oil field and
recovered from the sale of oil.
However, the legal opinion on the matter
contradicts the Rajasthan government stand saying any crude oil sale outside the
state will be considered inter-state sale irrespective of the delivery point and
attract three per cent central sales tax.
Also See:
ECS approves Cairn
India's pipeline project (26-Feb-08)