Explained: Why Nanar refinery project was stalled and why it may be revived

What was the objective of this project?

The project was mooted by the Centre and the Maharashtra government in 2014 and it was aimed at bringing development to the backward Konkan region. It was estimated that the project would bring in investment to the tune of Rs 3 lakh crore and generate employment for at least one lakh local residents. It would also create new job generating avenues by setting up ancillary units.

What is the current status of the project?

The project was scrapped ahead of the 2019 Assembly and Lok Sabha elections. The Shiv Sena, then an alliance partner of BJP, had put forward the condition that the Nanar project had to be scrapped if BJP wanted a pre-poll alliance with the party. Buckling to Sena’s pressure, the then chief minister Devendra Fadnavis had put a stay on the project. The then state industries minister, Subash Desai of Shiv Sena, had issued a notification to scrap the project.

Nanar village, where the controversial refinery project was scrapped. (Express Photo: Nirmal Harindran)

Why was the project stopped?

The Konkan region is Shiv Sena’s traditional bastion. To start the project, the government required 14,000 hectares of land spread across 17 villages in the region. Local Shiv Sena leaders, along with their followers, vehemently opposed the project. Sena leaders said the oil refinery would be detrimental for the environment of Konkan region.

In 2019, 14 gram panchayats adopted a resolution demanding scrapping of the project and local residents took to the streets to protest. They said the project would be hazardous to fishing and cultivation of paddy, mangoes and jack fruit, which are traditionally grown by local residents.

Ahead of Assembly and Lok Sabha polls, Shiv Sena feared that any attempt to give a go-ahead for the project could anger the voters. Shiv Sena president Uddhav Thackeray had adopted a cautious approach, stating “The Shiv Sena will go by the people’s wish. If people are against it, the Sena will not allow the project.”

What was the stand of Congress and NCP on Nanar refinery project?

Both parties have maintained that any decision regarding the oil refinery should consider the people’s sentiments and environmental aspects. They said they were not against the project provided the environmental concerns were addressed.

Farmers around Nanar village in Ratnagiri. (Express Photo: Prashant Nadkar)

Why was BJP keen on pushing the project?

The BJP believed the project would help them make deeper inroads in Konkan politically. It would also help in development of the region and generation of jobs. In 2019, when the Devendra Fadnavis-led government had denotified the project following pressure from the Sena, it started exploring the possibility of shifting the project to Roha in Raigad district.

However, both the Centre and state BJP reckoned that the ideal spot for the oil refinery was Nanar in Ratnagiri district.

What the Centre has said?

Union Minister for Education, Skill Development and Entrepreneurship Dharmendra Pradhan has indicated that the project may be revived.

Speaking at the ‘Loksatta Tarun Tejankit Awards 2021’ in Mumbai on Sunday, Pradhan said, “In collaboration with the United Arab Emirates and Saudi Arabia, it was planned to build a 6-million tonne oil refinery on the Konkan coast. But unfortunately, it was opposed. This wasted precious time. But now there are indications that the Maharashtra government is changing its mind. The plan is to reduce the size of the project and build it in Konkan,” Pradhan said, adding that the government’s change of mind should be welcomed with the phrase Der aaye durust aye (better late than never).

“If local residents agree, we have no reason to oppose the project,” said sources in the Sena.

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