HPCL's Rs 37,230-crore refinery in Rajasthan gets Cabinet nod

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).