Hindustan Petroleum to set up refinery cum petrochemical complex
Government owned Hindustan Petroleum Corporation Limited (HPCL) has plans to set up a refinery cum petrochemical complex in Rajasthan. For this, HPCL has signed a preliminary pact with the government of Rajasthan. The 9 million tonnes per annum refinery will be set up at Barmer, with an investment of Rs. 43,000 crore.
In a statement, the country’s oil minister Dharmendra Pradhan said that the construction of the proposed refinery will begin in the current financial year and will be completed in four years.
Once completed, this refinery complex will have the flexibility to process a mix of locally available Rajasthan crude and other types of local and imported crudes. The statement further stated, that HPCL has entered into 74:26 percent joint venture (JV) with Rajasthan government for this project.
Government of Rajasthan will provide a viability gap funding of Rs 1,123 crore per year for 15 years starting from the year of commercial production in the form of interest-free loan which shall be refunded by the JV company to the Rajasthan government in the next 15 years, according to the official statement.
According to the official statement, the Rajasthan Government will provide a viability gap funding of Rs. 1,123 crore per year. This funding will start from the year of commercial production in the form of interest-free loan which shall be refunded by the JV company to the Rajasthan government in the next 15 years.
For setting up refinery cum petrochemical complex, the Rajasthan government has already allotted 4800 acres of land at Pachpadra in Barmer district. In 2013, the company has signed a similar pact but after the change in government in Rajasthan, the pact was renegotiated and a renewed agreement was signed.
Dharmendra Pradhan said that in the state of Rajasthan, for the Petroleum and Petrochemical sectors, investments worth Rs. 70,000 crore is expected in the coming four years, including Rs. 43,000 crore in the refinery and Rs. 27,000 crore in the oil fields of Cairn.
By EPC World Media Group