Power Finance Corp provides Rs 9,187 cr finance to HPCL Rajasthan Refinery

State-owned Power Finance Corporation (PFC) on Thursday said it has provided Rs 9,187 crore finance to HPCL Rajasthan Refinery Ltd.

This is the first project where PFC has extended its financial assistance to the refinery and petrochemical sector, a company statement said.

PFC is extending its support in nation building not only through the power sector but also in the infrastructure segment, it stated.

"PFC, a Maharatna company and India's leading NBFC in the power sector, has extended its financial assistance of Rs 9,187 crore to HPCL Rajasthan Refinery Ltd for its 9 MMTPA refinery-cum-petrochemical complex located at Barmer, Rajasthan," it said.

HPCL Rajasthan Refinery Limited (HRRL) is setting up a green-field refinery-cum-petrochemical complex in Barmer district, Rajasthan, at a project cost of Rs 72,937 crore.

On July 4, 2023 HRRL executed a loan agreement under a consortium arrangement for Rs 48,625 crore, wherein the share of PFC Ltd was Rs 9,187 crore.

HRRL is a Joint Venture (JV) between Hindustan Petroleum Corporation Ltd (HPCL) and the Rajasthan government. HPCL holds 76 per cent in the JV, while the Rajasthan government holds the remaining 26 per cent stake.

The project includes setting up an environment-friendly refinery-cum-petrochemical complex, a pipeline for transportation of both Rajasthan crude and imported crude, pipeline for transportation of water to the refinery site, a captive power plant, crude and product storage facilities, township and allied facilities and utilities.

The project will be producing clean fuels such as BS-VI grade Motor Spirit (MS or Petrol) & BS-VI grade High-Speed Diesel (HSD or Diesel) and Petrochemical products such as Polypropylene, Butadiene, LLDPE, HDPE, Benzene and Toluene.

The project will cater to increased demand for petroleum and petrochemical products in the country and the Western, Northern and Central parts of India in particular.