HPCL to set up Rs 37,000 cr refinery, petchem project in Rajasthan
State-owned Hindustan Petroleum Corp Ltd (HPCL) plans to invest Rs 37,000 crore in setting up a nine million tonne oil refinery and a petrochemical complex at Barmer in Rajasthan.
The company will on March 13 sign a Memorandum of Understanding (MoU) with the Rajasthan government for setting up the refinery-cum-petrochemical complex, a source privy to the development said.
HPCL board earlier this week approved setting up of the complex costing Rs 37,000 crore. Also, it approved expansion of the Bhatinda refinery in Punjab from 9 million tonne to 11.2 million tonnes.
The Bhatinda refinery is operated by HPCL-Mittal Energy Ltd, an equal joint venture of HPCL and steel baron Lakshmi Mittal. HMEL had last year commissioned the Rs 21,500 crore Guru Govind Singh refinery at Bhatinda.
HPCL and Mittal Energy Investment Pte Ltd, Singapore, an L N Mittal Group Company,hold a 49 per cent stake each in HMEL, while the remaining 2 per cent is with financial institutions.
Sources said half of the crude oil requirement at the proposed refinery at Barmer is to come from the neighbouring oilfields of Cairn India. The rest will be imported crude.
The MoU signing in Jaipur will be attended by Oil Minister M Veerappa Moily and Rajasthan Chief Minister Ashok Gehlot.
HPCL, they said, has asked the state government to extend fiscal benefits like the ones extended by Gujarat and Orissa to new
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