City Reports

PM Narendra Modi to lay foundation stone for Barmer oil refinery on January 14

The foundation ceremony has apparently been well timed ahead of the upcoming by-polls for Alwar and Ajmer parliamentary constituencies and Mandalgarh assembly constituency.

| Updated:
February 1, 2018 11:09 am
prime minister Narendra Modi

Prime Minister Narendra Modi.

Jaipur: Prime Minister Narendra Modi will lay the foundation stone of Pachpadra refinery in Barmer district on January 14.

The foundation ceremony has apparently been well timed ahead of the upcoming by-polls for Alwar and Ajmer parliamentary constituencies and Mandalgarh assembly constituency.

Source said that the state government wanted Modi to address public rallies in the state ahead of the elections to leverage his popularity.

A joint venture agreement was signed between the Rajasthan government and HPCL in August. Earlier it was expected that the PM would lay the foundation stone in December, but it was postponed apparently to make the date as much as closer to the by-elections as possible.

The refinery will come up on nearly 12500 bigha land allotted in the name of a join company of the state government and HPCL. The land is close to a salt lake in Pachpadra.

Under the project, a crude oil pipeline (50-60 km in length) and a water pipeline (nearly 200 km in length) will be laid. With a capacity of producing 9 million metric ton oil per annum, the refinery will cost Rs 43,149 crore. HPCL’s share will be 75 percent, while rajasthan government’s equity will be 26 percent. The state government will pay Rs 3738 crore for its 26% equity. The government will give interest free loan (the viability gap funding) of Rs 16,845 crore to HPCL. The viability gap funding (VGF) will be Rs 3,736 crore annually. This will be paid over a period of five years by the government.

PM Modi will also visit Jhunjhunu on January 22 to praise the state’s achievements under the ‘Beti Bachao’ campaign.

First published: December 28, 2017
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