HPCL to set up Rs 37,320 cr refinery, petchem project in Rajasthan - The Economic Times

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14 MAR, 2013, 05.27PM IST,

HPCL to set up Rs 37,320 cr refinery, petchem project in Rajasthan

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JAIPUR: State-owned Hindustan Petroleum Corp Ltd today signed an initial agreement to set up a Rs 37,320- crore oil refinery and petrochmecial complex in
Barmer desert.
The nine million tonnes per annum facility, the first refinery in Rajasthan, is planned to go on stream in four years.
A memorandum of understanding (MoU) for setting up the refinery was signed between HPCL
Minister M Verrappa Moily and state Chief Minister Ashok Gehlot.

and Rajasthan government in the presence of Oil

The refinery, which will fulfil nearly a decade-old demand of the state, will run on crude oil from neighbouring oilfields of Cairn India. Half of the crude oil requirement
at the proposed refinery come from the Barmer oilfields of Cairn and the rest will be imported.
While HPCL will own majority stake in the refinery, state government will take 15-26 per cent stake in the project. Besides, the Rajasthan government has given inprinciple approval for providing an interest free loan of Rs 3,736 crore per annum for 15 years from the date of commercial production.
Speaking on the occasion, Moily said the refinery will not just accelerate economic growth and development in the region but also become an anchor industry for
developing downstream and other service sector industries in and around the region.
Highlighting the aspects of the project, Moily said the proposed petrochemical complex will be the first such complex specifically designed to produce petrochemicals
from the indigenous crude oil.
The Gehlot government has also assured continuous supply of 28 MGD of water for the project from Indira Gandhi canal and about 3,500 acres of land for refinery,
terminal and township near Leelala area in Barmer.
Gehlot said the project will market the beginning of a transformation and starting of industrial and economic growth of the state.
Originally, state-owned Oil and Natural Gas Corp (ONGC), which owns 30 per cent interest in the Barmer oilfields of Cairn India
committed to building the refinery but later it started soft-peddling the project.

, had in 2005

Last year, HPCL entered the fray and has proposed to take 51 per cent stake in the project. ONGC
, which originally had the authorisation from the
government for processing the Barmer crude at the proposed refinery, too is now keen to take a stake in the project.
Rajasthan government is acquiring about 926 hectares of land for the project in which Engineers India Ltd

too will take a small stake.

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http://economictimes.indiatimes.com/articleshow/18971051.cms?prtpage=1

3/16/2013

HPCL to set up Rs 37,320 cr refinery, petchem project in Rajasthan - The Economic Times

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3/16/2013