Union Cabinet Approved HPCL’s Proposal to Set up Ref-Cum-Petchem at Barmer
The Union Cabinet approved the proposal of HPCL to set up a 9 MMTPA greenfield Refinery cum Petrochemical Complex in Barmer.
The Union Cabinet on 20 September 2013 approved the proposal of Hindustan Petroleum Corporation Limited (HPCL), a Public Sector Undertaking to set up a 9 MMTPA greenfield Refinery cum Petrochemical Complex in Barmer District in Rajasthan. This Refinery cum Petrochemical Complex will be set up as a Joint Venture (JV) with Government of Rajasthan under the name HPCL-Rajasthan Refinery Limited (HRRL).
Highlights of the HPCL-Rajasthan Refinery Limited (HRRL)
• The HPCL-Rajasthan Refinery Limited will be the subsidiary of HPCL with its equity of 74 percent to be held by the HPCL and 26 percent to be held by the Government of Rajasthan.
• The overall cost of the project is estimated at 37230 crore Rupees.
• The finance of the project is proposed to be sourced with the debt/equity ratio of 1.5:1. Total equity component is 14892 crore Rupees and debt is 22338 crore Rupees.
• HPCL’s equity contribution is 11020 crore Rupees at 74 percent equity and Govt. of Rajasthan’s equity contribution is 3872 crore Rupees at 26 percent.
• For this purpose, HPCL signed the Memorandum of Understanding on 14 May 2013 with the Government of Rajasthan. Thereafter, HPCL also signed the Joint Venture agreement with the Government of Rajasthan on 11 July 2013.
• The proposed refinery will process 4.5 MMT of Mangala Crude and 4.5 MMT of Arab/other crude(s).
• The refinery will fetch economic benefit to the economy of Rajasthan either directly or indirectly, which in turn will result in substantial increase in income, output, employment and tax earnings of the State.