Union Cabinet Approved Hindustan Petroleum Corporation Limited's Refinery in Rajasthan

Sep 20, 2013 18:29 IST

The Union Cabinet on 20 September 2013 approved setting up of a nine million tonne  refinery-cum-petrochemical complex by Hindustan Petroleum Corporation Limited, HPCL's, in Barmer, Rajasthan.

Hindustan Petroleum Corporation Limited (HPCL) would setup the refinary as a Joint Venture (JV) with Government of Rajasthan under the name HPCL-Rajasthan Refinery Limited (HRRL).

The proposed refinery will be a subsidiary of HPCL with its equity of 74 percent to be held by HPCL and 26 percent to be held by the Government of Rajasthan. The cost of the project is estimated at 37230 crore Rupees. The project cost is proposed to be sourced with a debt or equity ratio of 1.5:1.

In this regard HPCL has signed a Memorandum of Understanding on 14 May, 2013 with Government of Rajasthan. HPCL has subsequently also signed a Joint Venture agreement with Government of Rajasthan on 11 July, 2013 on these terms for setting up the refinery as a joint venture. The proposed refinery will process 4.5 MMT of Mangala Crude and 4.5 MMT of Arab or other crude oil.

Setting up of the refinery facilitates direct and indirect economic benefit to the economy of Rajasthan, which shall, besides industrialization, result in substantial increase in income, output, employment and tax earnings of the State.

Is this article important for exams ? Yes32 People Agreed
Read more Current Affairs on: Hindustan Petroleum Corporation Limited

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