State-owned Hindustan Petroleum (HPCL) has received its board approval for incorporation of a joint venture (JV) company to set up Rs 37,320-crore oil refinery and petrochemical complex in Rajasthan. It is planning to hold 74% stake in the 9 million tonne a year refinery with Government of Rajasthan taking 26%. The unit is planned to go on stream in four years.
The refinery will run on crude oil from neighbouring oilfields of Cairn India. A part of the crude oil requirement at the proposed refinery will come from the Barmer oilfields of Cairn and the rest will be imported. Other than taking 26% stake, the state government has given in-principle approval for providing an interest free loan of Rs 3,736 crore per annum for 15 years from the date of commercial production.
