Gujarat Government today said the investment of Rs 19,716 crore made by the state-run Gujarat State Petroleum Corporation for oil and gas exploration in the Krishna Godavari (KG) basin was not a "wasteful expenditure".
Energy Minister Saurabh Patel, in a statement, also pointed out the project was approved when the Congress-led UPA Government was in power in the Centre.
Congress has alleged irregularities in the project.
"People who are making allegations lack understanding of oil exploration sector. Congress has once again showed its anti-Gujarat mentality....GSPC is doing a commendable job in the KG Basin project," the Minister said in the statement.
"Investment of Rs 19,716 crore made by GSPC is not a wasteful expenditure but it is an investment towards making India self-sufficient in petroleum sector," he added.
"There are three phases in any oil exploration project - exploration appraisal, development and production. At present, GSPC is in the project development phase. So the actual production will start in future," said Patel.
"During the UPA rule the Director General of Hydrocarbons not only certified the project as viable but also gave approval to the field development plan," he said.
Commenting on the CAG report on GSPC cited by Congress, Patel said of the 25 points raised by CAG in 2010, 19 points were already settled by the Gujarat Assembly committee on the state PSUs at that time.
"Congress should refrain from damaging Gujarat's image by raising this issue in the Parliament," said Patel.
"Instead of appreciating GSPC's performance, Congress is condemning it for political mileage. If such practice continues, companies engaged in oil exploration business in India will get demoralized," the Minister said.
Due to the efforts of Narendra Modi when he was the Chief Minister and the present Chief Minister Anandiben Patel, Gujarat was the only state in India which built a gas-based economy by setting a gas-grid to cater millions of households, he said.
