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Rediff.com  » Business » Rajasthan wants good deal from ONGC

Rajasthan wants good deal from ONGC

February 06, 2007 17:15 IST
The chief minister of Rajasthan, Vasundhara Raje has asked the ONGC chairman to hold talks with the state government over the oil refinery to be set up in Barmer in Rajasthan.

She said that as the head of the state government she would like to get the best deal from the ONGC just as the company officials would like to have a good deal for their company.

The company has put the project on the hold and asked the Rajasthan government to pay Rs 26,000 crore (Rs 260 billion) under various heads including laying road upto the well, which alone would cost over Rs 300 crore (Rs 3 billion). ONGC and wants a favourable agreement before starting the work.

According to sources, the Navratna company found the commercial feasibility of the oil well in Barmer is almost nil and has oil for next six years only. Thereafter the well would have to be abandoned.

"ONGC has not responded to my invitation to hold talks so far. The company wants Rajasthan to back out of the deal. But we are not going to do it," Raje said.

Senior officials of ONGC were not willing to comment on the chief minister's statement.

Onkar Singh in New Delhi