The work for the refinery will commence in the current financial year and will complete in next four years, Union Oil Minister Dharmendra Pradhan said.
It will be the largest industrial investment in the state, the minister said further.
"It was a direct loss of Rs 40,000 crore to the state of Rajasthan in 15 years. In the previous MoU, the state had to give Rs 3,736 crore interest free loan every year for 15 years, which would have burdened the state finances," Pradhan told reporters after signing of the MoU.
Elaborating further about the upcoming refinery project, Pradhan said that HPCL, that had to spend Rs 37,230 crore under the previous deal, will now spend Rs 43,129 crore.
"Oil field permission had to end in 2020 but we have provided permission to the refinery to run for 10 more years. Apart from 43,129 crore, additional Rs 27,000 crore investment will be made in the refinery, oil field and petro-chemical complex.
"Overall, Rs 70,000 crore worth investment will be made in next four years," Pradhan said.
According to the fresh MoU, the refinery will produce BS-VI emission norms compliant fuel. The government plans to move to BS-VI emission norms by 2020.
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