By IANS
Jaipur : Rajasthan has expressed concern over the delay in starting oil production from fields in Barmer district, leading to huge loses.
The desert state, which had expected to begin oil production from the end of 2006, would now have to wait till 2009.
"Rajasthan would have to bear huge losses of millions of rupees because of this delay," L.N. Dave, the state minister for mines, said here Saturday.
Dave has written a letter to Union Petroleum and Natural Gas Minister Murli Deora in this regard, seeking a go-ahead on a proposed agreement between state-run Oil and Natural Gas Corp (ONGC) and private energy major Cairn India for setting up a pipeline to take oil from the state to the coast.
The minister said that according to the plans prepared by ONGC, the oil production could start by the first quarter of 2009.
In his letter he has said that the state government is ready to hold talks with ONGC for setting up a refinery in the state, but the proposal given by ONGC involves a condition of rebates of around Rs.260 billion on an investment of Rs.100 billion to establish a refinery.
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