Rajasthan, HPCL sign JV for Barmer refinery

The Rajasthan government Thursday entered into a joint venture agreement with Hindustan Petroleum Corporation Ltd (HPCL) to set up a company for the establishment of a green field refinery cum petrochemical complex in the state's Barmer district.

State Mines and Petrochemicals Secretary Sudhansh Pant and HPCL's director (finance) K.V. Ra signed the agreement in the presence of Chief Minister Ashok Gehlot, Mines Minister Rajendra Pareek and HPCL CMD S. Roy Choudhury and other officials

The company, HPCL-Rajasthan Refinery Limited (HRRL), in which Rajasthan government will hold 24 percent share and HPCL 76 percent, is slated to set up the complex in four years in Pachpadra in Barmer district at an estimated cost of Rs.37,229 crore.

The company, which will have paid up share capital initially of Rs.100 crore and authorized share capital of Rs.4,000 crore initially, will have 8 directors - six of HPCL and 2 of the Rajasthan government.

"We will be bring in state of art technology for this project, which is expected to bring lots of benefits for the state as a whole," Roy Choudhury told media persons at a joint press conference.

Gehlot stressed that steps should be taken to complete the project in specific time period of four years.

"The company should try to provide more employment opportunities to local people," he said.

On March 14, the Rajasthan government had signed a memorandum of understanding (MoU) with HPCL to set up 9 million tonnes per annum refinery and petrochemical complex in Barmer district.

As per the MOU, the state government will provide interest free loan of Rs.3,736 crore for the next 15 years to HPCL for setting up a refinery.

This will be Rajasthan's first refinery and taking into account the ancillary industries that are likely to come up, the total investment could be in the region of Rs.70,000 crore, while "thousands of jobs would be generated", said a senior state government official.

The refinery will produce various petroleum and pro-chemical products.