The project was aimed at developing the backward Konkan region. Apart from the investment of Rs 3-lakh crore it would have brought to the region, the project also promised creation of job generating avenues by setting up ancillary units
Union Minister of Education, Skill Development and Entrepreneurship Dharmendra Pradhan on Sunday hinted at reviving the Nanar oil refinery project in the Konkan region as Maharashtra’s Shiv Sena government seems to be changing its mind about the project.
The project has been a bone of contention between the Shiv Sena and its former ally BJP for almost seven years as the former vehemently opposed it.
Let’s take a look back at what is the oil refinery project, why has Shiv Sena opposed and why there’s a chance it may get revived now:
What is the Nanar oil refinery project?
The Ratnagiri Refinery and Petrochemicals Ltd (RRPCL), commonly referred to as the Nanar oil refinery project, was proposed to be set up in Ratnagiri district in the Konkan region in 2015. It was going to be a joint venture between Indian investors like Indian Oil, Bharat Petroleum and Hindustan Petroleum, and the Saudi-owned Aramco.
State-owned oil refiners – Indian Oil Corporation, the ONGC-owned Hindustan Petroleum, and Bharat Petroleum – jointly own 50 percent in the project, while Saudi Aramco and Abu Dhabi National Oil Company own the rest of the equity.
The biggest oil refinery project, when finished, could bring in an investment of Rs 3 lakh crore, was proposed to come up in over 15,000 acres across 17 villages in Ratnagiri and Sindhudurg districts.
The proposal for the 60-million tonne per annum refinery-cum-petrochemical complex was cleared by the Centre and state governments back in December 2015.
The project was aimed at developing the backward Konkan region. Apart from the investment of Rs 3 lakh crore it would have brought to the region, the project also promised creation of job generating avenues by setting up ancillary units.
What is the current status?
In January 2019, the then BJP-led state government had notified 19,146 hectares of land in Raigad as an integrated industrial cluster. The government had even initiated the process of land survey.
Ahead of the 2019 Assembly and Lok Sabha elections, the project was dumped because of “environmental concerns” expressed by the Shiv Sena.
The scrapping of the project was one of the conditions of the Shiv Sena for a tie-up with the BJP ahead of the 2019 Lok Sabha and state Assembly polls.
The then state industries minister, Subash Desai of Shiv Sena, had issued a notification to scrap the project.
Why did Shiv Sena oppose the project?
The Shiv Sena opposed the project in 2015, even when BJP was in power in Maharashtra in alliance with the Sena. The Uddhav Thackeray-led party had opposed its ally on the matter, citing opposition from local residents and organisations.
It must be noted that the Konkan region is the Shiv Sena’s biggest vote bastion. The party has been averse to the oil refinery project coming up in Konkan, citing the adverse environmental impact of the project on the ecologically sensitive region.
According to a report by Indian Express, 14 gram panchayats adopted a resolution in 2019 demanding scrapping of the project and local residents took to the streets to protest.
The protesters claimed that the project would be hazardous to fishing and cultivation of paddy, mangoes and jackfruit, which are traditionally grown by local residents.
After the state Assembly elections, the NCP, Shiv Sena and Congress formed the MVA government in the state under the leadership of Thackeray.
According to a report in The Indian Express, in October 2019, the Thackeray government denotified the 19,146-hectare land reserved in Raigad district by the previous Devendra Fadnavis-led government for the mega oil refinery.
Why has the BJP pushed for the project?
The BJP has been keen on the project as it is believed it will help the party make inroads in the Konkan region, apart from development of the region and generation of jobs.
While scrapping the project in 2019, the BJP government had started exploring the possibility of shifting the project to Roha in Raigad district.
What have the leaders said?
Speaking at an event, Pradhan said that there are indications that the Maharashtra government is changing its mind about the project.
“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.
He added that the Nanar oil refinery project has the potential to contribute “millions of crores of rupees and employment to Maharashtra’s economy”.
According to a report by The Print, the Uddhav Thackeray-led Maharashtra government is softening its stand on the project while looking at options to relocate the project to another location in Konkan itself.
Maharashtra Industries Minister Subhash Desai told ThePrint Tuesday that two villages in Ratnagiri — different from Nanar — have been earmarked for the project.
With inputs from agencies
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