Hindustan Petroleum Corporation (HPCL) has received clearance from Union Cabinet for its Rs 37,229 crore refinery-cum-petrochemical complex in Rajasthan. The company has received the Cabinet’s nod just ahead of the planned foundation stone laying of the 9 million tonnes (MT) refinery at Pachpadra in Barmer district of Rajasthan.
The project is expected to bring overall investment of Rs 60,000-70,000 crore in the entire area. It is expected to be commissioned by the end of 2017. Meanwhile Rajasthan government has agreed to provide interest free loan of Rs 3,736 crore every year for 15 years from the date of commencement of production. The same is to be repaid by the joint venture in equal annual installments from 16th years after commercial production commences for the next 15 years.
The refinery will process the locally available crude, as well as other varieties. The refinery-cum-petrochemical complex is designed to produce motor fuels with the latest environmental specifications and a wide range of petrochemicals. About half the crude oil for the plant would come from the Barmer basin and the rest would be imported.
HPCL will hold up to 74% stake in the project, while the balance 26% will be with Rajasthan government.
