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ONGC says the statement on June 25 was not correct
NEW DELHI, June 26, 2007: Oil and
Natural Gas Corp. chairman and managing director Mr. R.S. Sharma
today denied its previous statement published in several news
papers on June 25 regarding oil refinery at Rajasthan and assured
that he is committed to set up the oil refinery of capacity of 7.5
million tonns per annum in Rajasthan.
ONGC says not to set up refinery in Rajasthan
NEW DELHI (Reuters), June 25, 2007:
Oil and Natural Gas Corp. said on Monday it had no plans to set up a refinery in Rajasthan and a decision on a pipeline to transport Cairn India's crude was likely this week.
"The economics (to set up a refinery) was turning out to be worse so now the administrative ministry says that only a pipeline will come up and decision would be taken on June 27,"
R.S. Sharma, ONGC's chairman and managing director, said."It will be decided whether a pipeline will be laid by ONGC and Cairn or a special purpose vehicle or a third party," he told reporters.
It is to be
noted that the case to set up an oil refinery in Rajasthan is
already in
Rajasthan High court for hearing in next month July
2007.
Jaipur, January 15, 2007
Oil and Natural Gas Corporation (ONGC) and Cairn India have resolved
differences for building a $340 million pipeline to evacuate crude oil from Barmer, Rajasthan to Gujarat.
"We have reached an understanding for setting up a pipeline to take the Rajasthan crude to Gujarat,"
R S Sharma, chairman and managing director, ONGC, said today.
Sources said the petroleum ministry has given its consent to include the pipeline cost in the field development plan for the Rajasthan fields. Like the cost for developing Mangala, Bhagyam and Aishwariya fields, the pipeline investment will also be shared between Cairn and ONGC in the ratio of 70:30. The
construction will take 12-18 months.
Sharma said the option of building a refinery in Rajasthan was still open, but investment would be made only if the state government gave fiscal incentives. "Irrespective of the fact that the refinery is built or not, we have to build a pipeline to evacuate crude in the interim period. We can sell the crude to IOC, MRPL or private sector refiners," he said.
Jaipur, January 16, 2007
Rajasthan has sought the Centre's intervention to push Oil and Natural Gas Corp in setting up a refinery in the state, but indicated it will not give tax sops as demanded by the public sector company. The concessions sought by ONGC from the state government were substantially disproportionate to the total investment on the refinery, state Chief Minister Vasundhara Raje has written in a letter to Union Petroleum Minister Mulri Deora.
The letter comes just a day after ONGC said it has resolved differences with
Cairn India Ltd over laying of a pipeline from Barmer region in Rajasthan to Gujarat.
ONGC Chairman and Managing Director R S Sharma yesterday said the option of building a refinery was still open but investment would be made only if the state government gave fiscal incentives.
Vasundhara Raje said ONGC was demanding fiscal incentives of massive
magnitude for implementing its earlier decision of setting up the refinery. The amount asked from the state government as VAT-deferral and interest free unsecured loan was a staggering Rs 21,000 crores as against the envisaged investment of Rs 12,000 crores, she added.
The incentives being sought were far in excess of what has been agreed for new refineries in other states like Punjab, Madhya Pradesh and Orissa, which do not offer the advantage of crude production, she said. The viability of the refinery must have been examined both by the ministry as well as by ONGC at the time of taking a decision, she said, but added it seemed that the company was now not inclined to build the refinery.
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