HPCL's Rs 37,230-crore refinery in Rajasthan gets Cabinet nod
The greenfield project is being set up as JV with Government of Rajasthan
The Union Cabinet has approved the proposal of Hindustan Petroleum Corporation Limited (HPCL) to set up a 9 MMTPA greenfield refinery cum petrochemical complex in Barmer District in Rajasthan, as a Joint Venture (JV) with Government of Rajasthan under the name HPCL-Rajasthan Refinery Ltd (HRRL).
The proposed refinery will be a subsidiary of HPCL with its equity of 74% to be held by HPCL and 26% to be held by the Government of Rajasthan. The cost of the project is estimated at Rs 37,230 crores. The project cost is proposed to be sourced with a debt/equity ratio of 1.5:1. Total equity component is Rs 14,892 crores and debt is Rs 22,338 crores. HPCL’s equity contribution is Rs 11,020 crores at 74% equity and Government of Rajasthan’s equity contribution is Rs 3,872 crores at 26%.
HPCL has signed a JV agreement with Government of Rajasthan on July 11, 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/other crude(s).
The proposed refinery will be a subsidiary of HPCL with its equity of 74% to be held by HPCL and 26% to be held by the Government of Rajasthan. The cost of the project is estimated at Rs 37,230 crores. The project cost is proposed to be sourced with a debt/equity ratio of 1.5:1. Total equity component is Rs 14,892 crores and debt is Rs 22,338 crores. HPCL’s equity contribution is Rs 11,020 crores at 74% equity and Government of Rajasthan’s equity contribution is Rs 3,872 crores at 26%.
HPCL has signed a JV agreement with Government of Rajasthan on July 11, 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/other crude(s).