The Union Cabinet has approved the proposal of Hindustan Petroleum Corporation Limited (HPCL), a Public Sector Undertaking 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 Limited (HRRL). A subsidiary of The Proposed refinery will be its Equity of 74% to be held by HPCL with HPCL and 26% to be held by the Govt. of Rajasthan. The cost of the project is estimated at Rs. 37,230 crore. The project cost is proposed to be sourced with a detbt / equity ratio of 1.5:1. Total equity component is Rs.14, 892 crore and debt is Rs.22, 338 crore. HPCL's equity contribution is Rs.11, 020 crore at 74% equity and Govt. of Rajasthan's Equity Contribution is Rsl3, 872 crore at 26%. M / s. HPCL has signed a Memorandum of Understanding on 14th May, 2013 with Govt. of Rajasthan in this regard. HPCL has subsequently also signed a JV agreement with Govt. of Rajasthan on 11th July, 2013 on these terms for setting up the refinery as a joint venture. The Proposed Process will refinery of 4.5 MMT and 4.5 MMT of Mangala Crude Arab / other Crude (s). There shall be A Direct and indirect economic Benefit to the Economy of Rajasthan, which shall, besides Industrialization, Result in substantial increase in Income, output, employment and tax earnings of the State.
