State-owned Hindustan Petroleum Corp Ltd (HPCL) has approved the incorporation of a joint venture company to set up Rs 37,320-crore oil refinery and petrochemical complex in Rajasthan, as per Press Trust of India. HPCL will hold 74% stake in the 9 mln tpa refinery and Government of Rajasthan will hold 26%. The unit is planned to go on stream in four years. Besides stake acquisition, the state has given in-principle approval for providing an interest free loan of Rs 3,736 crore per annum for 15 years from the date of commercial production. The state government has also assured continuous supply of 28 MGD of water for the project from Indira Gandhi canal and about 3,500 acres of land for refinery, terminal and township near Leelala area in Barmer.
The refinery, which will fulfill nearly a decade-old demand of the state, will run on crude oil from neighbouring oilfields of Cairn India. Half of the crude oil requirement at the proposed refinery will come from the Barmer oilfields of Cairn and the rest will be imported.
26-Apr-13 
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