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Following is a press brief released about setting up of a 9 MMTPA Greenfield Refinery-cum-Petrochemical Complex in Barmer district, Rajasthan, by Hindustan Petroleum Corporation Ltd. (HPCL) as Joint Venture with Government of Rajasthan. 

Hindustan Petroleum Corporation Limited (HPCL), a public sector undertaking under Ministry of Petroleum and Natural Gas has proposed 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 (GOR) under the name HPCL-Rajasthan Refinery Limited (HRRL). 

The proposed refinery will be a subsidiary of HPCL with its equity of 74 percent to be held by HPCL and 26 percent to be held by Govt. of Rajasthan The cost of the project is estimated at INR 37,230 crore at February-2013 prices. The project cost is proposed to be sourced with a debt/equity ratio of 1.5:1. Total equity component is INR 14892 crore and debt is INR 22338 crore. HPCL's equity contribution is INR 11020 crore at 74 percent equity and GoR's equity contribution is INR 3872 crore at 26 percent.

M/s HPCL has signed a Memorandum of Understanding on 14.03.2013 with GOR in this regard. HPCL has subsequently also signed a JV Agreement with GOR on 11.07.2013 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).

It has been envisaged that there shall be a direct, indirect and induced economic benefits to the economy of Rajasthan, which shall, besides industrialisation; result in substantial increase in income, output, employment and Tax earnings for the State. 

Government has, accordingly, decided to grant approval to HPCL for setting up a 9 MMTPA greenfield Refinery cum  Petrochemical  Complex in Barmer district in Rajasthan, as a Joint Venture (JV) with Government of Rajasthan (GOR) under the name HPCL- Rajasthan Refinery Limited (HRRL).

Source: SNP Infra Research