New refinery likely in Barmer

Cairn and ONGC have engaged experts to carry out viability studies for a refinery proposal in the discrict near Cairn Indias Mangala oilfield. Surveys have been done and a report with an investment proposal has been sent to SBI Capital, ONGC chairman and managing director R S Sharma said. He said that the proposed refinery would be a non-PSU entity and would be floated as a special purpose vehicle.

Sharma said that the internal rate of return being calculated would be low and the SPV would need fiscal incentives to be profitable. Bilateral discussion with state government is on and the ball is now in the state governments court. However,it should also be kept in mind that economics can not be overlooked. Rajasthan chief minister Ashok Gehlot made an emotional appeal to the Prime Minister for the construction of an oil refinery in the discrict near Cairn Indias Mangala oilfield. Petroleum minister Murli Deora endorsed Gehlots views.