Prime Minister Narendra Modi inaugurated the Rajasthan Refinery and multiple development projects in Balotra, Rajasthan, emphasizing energy security and infrastructure development. The refinery project, whose MoU was signed in 2017 but stalled during 2018-2023 under previous state government, will provide employment to thousands and represents India's growing refining capacity, now ranked fourth globally.
Energy Crisis Response
The address detailed India's response to the West Asia energy crisis, which caused global crude prices to surge from $70 to $120 per barrel. To address LPG supply disruptions (60% imported, 90% from Gulf via Strait of Hormuz), the government redirected industrial gas production to LPG, increasing production from 35,000 metric tons to 54,000 metric tons within seven days. Over 11 lakh households were connected to PNG (piped natural gas) as an alternative. Despite global conditions that could have pushed domestic cylinder prices to ₹2,000, prices were maintained below ₹950 (₹650 for Ujjwala beneficiaries), with a recent commercial gas price cut.
Financial Impact
Between April and June, oil companies absorbed losses exceeding ₹75,000 crore on diesel and petrol sales, equivalent to building a new refinery. The government reduced excise duty by ₹10 per liter to mitigate public burden. During the fertilizer crisis triggered by Ukraine and West Asia conflicts, urea was maintained at ₹300 per bag despite global prices exceeding ₹3,000, requiring substantial government subsidies.
Infrastructure Developments
The event marked the inauguration of Jodhpur Airport's new terminal and the foundation laying for Jaipur Metro Phase-2, which will extend the metro network beyond 50 kilometers upon completion. A ₹34,000 crore water project was announced to bring water from Hathnikund Barrage to Rajasthan's Shekhawati region via underground pipelines, benefiting Sikar, Churu, and Jhunjhunu districts.
Additional Initiatives
The PM Surya Ghar Free Electricity Scheme has connected over 150,000 Rajasthan homes to solar power, while the PM Kusum Scheme provided more than 65,000 solar pumps to farmers. Nearly 54,000 youth received government job appointment letters, and approximately 125,000 soak pits were constructed in Rajasthan under water conservation efforts.