All decks have been cleared for Hindustan Petroleum Corporation Limited (HPCL) 9 MMTPA (Million Metric Tonnes Per Annum) capacity grass root Refinery cum Petrochemical Complex to be set up at a cost of Rs 43,129 crore at Barmer in Rajasthan.
To be set up as a Joint venture between HPCL and the Government of Rajasthan (GOR), the complex will have State-of-the-art technologies and best combination of process units for maximizing the value. The refinery will produce Petrol and Diesel fuels meeting BS-VI specifications and Petrochemicals such as Polypropylene, Polyethylene and other petrochemical products.
The Refinery will have flexibility to process a mix of locally available Rajasthan crude and other types of local and imported crudes
The refinery will be set up by a joint venture company named “HPCL Rajasthan Refinery Limited” in which HPCL will hold 74% equity and GOR will hold 26% equity.
Government of Rajasthan will provide viability gap funding of Rs. 1123 Crore per year for 15 years starting from year of commercial production in the form of Interest free loan which shall be refunded by the JV company to GOR in next 15 years.
GOR has already allotted 4800 acres of land at Pachpadra in Barmer district for setting up the Refinery complex.
The project is expected to be mechanically completed within 4 years from the last date of receipt of all statutory approvals.
The project opens up huge potential for developing downstream industries and other service sectors in and around the region, opening up new opportunities for direct and indirect employment. Setting up of the Grass-root Refinery cum Petrochemical complex in Barmer will be an important trigger for fueling all round economic growth in the State of Rajasthan.