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Journalism of Courage
Steel baron L N Mittal has demanded additional concession for the upcoming oil refinery at Bathinda,countrys largest FDI project,which could cost the cash-strapped state a whopping Rs 6,000 crore. As per the original agreement with Mittal,the state government was to extend Rs 1,250 crore as interest-free loan to the company for five years.
HPCL-Mittal Energy Limited,the company executing the refinery project,has now sought an additional Rs 200 crore every year from the state government,besides seeking an extension in the repayment of the loan from five to 15 years. This will increase the debt burden on the Punjab government,which will be providing funds for the next 15 years to Mittals company,without getting any interest. A government official said,If the government agrees to Mittals new demands,the state government will mount its borrowings by Rs 6,000 crore. Interestingly,till last year,the annual plan size of the state was Rs 6,250 crore. Mittal has also sought the intervention of the Prime Minister for more concessions,citing the global financial crisis.
