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CASE STUDY
International School

Of

Business

Management, Suresh Gyan Vihar

University, Jaipur

2013

Economics of the Barmer Refinery
Author - Dr. Ruchi Goyal, Associate professor, ISBM
Dr. Trilok Kumar Jain, Dean, ISBM
Large projects have many plus and minus points. Investing in large projects involves huge outflow of resources. These projects also have many un-wanted side effects on people living in neighboring areas. These projects also change the aspirations and consumption habits of people in the nearby areas, thereby changing their living standards. Large projects also affect the local ecology, traditions, rituals, practices and in a way the entire life style. Hence, there is a need of proper planning for setting up large projects. Western Rajasthan, is facing years of drought and famine, Barmer one of the largest districts of the state of Rajasthan in India is largely arid and forms a part of Thar Desert. Its total area is 28,387 Sq. kms. Barmer had a population of
19,64,835 in 2001. The district has 3.48 percent of state’s population and 8.29 percent area.
Agriculture, which is the prime occupation of rural India, is an unattractive proposition here due to the frequency of droughts, the inhospitable terrain and the lack of irrigation facilities that plague the area. With a few industries around, the only source of income seems to be animal husbandry, the traditional craft of patchwork and mirror embroidery. It is one of the twelve districts in Rajasthan currently receiving funds from the Backward Regions Grant Fund
Programme (BRGF).
In the recent times, Barmer has observed a structural change in its economy as depicted by district income estimates at current prices. Total income generated in 1999-2000 was Rs.165071 lakh, which increased to Rs. 259338 lakh in 2004-05; a 1.57 time increase. Simultaneously, the contribution of agriculture and allied sectors declined from 38.4 percent to 32.3 percent from
1999-00 to 2004-05. There is

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