HPCL inks JV deal with Rajasthan for refinery, petro complex
12 Jul 2013
State-run Hindustan Petroleum Corporation Limited (HPCL) has signed a joint venture agreement with the Rajasthan government to set up a refinery-cum-petrochemical complex in Barmer district.
The JV company, to be called HPCL-Rajasthan Refinery Ltd, will execute the ambitious project, estimated to cost Rs37,229 crore. The state will own 26 per cent and HPCL 74 per cent.
The agreement was signed in Jaipur on Thursday in the presence of chief minister Ashok Gehlot, the state's mines and petroleum minister Rajendra Pareek, and HPCL chairman and managing director S Roy Choudhury.
Rajasthan mines and petroleum secretary Sudhansh Pant and HPCL director (finance) K V Rao signed the pact.
The agreement paves the way for establishment of an oil refinery on government land at Pachpadra in Barmer district in the next four years. It will source crude from the oil fields in western Rajasthan, and also import crude and manufacture various petroleum and petrochemical products.
Addressing a joint press conference, Roy Choudhury said the agreement, coming within four months after the signing of a memorandum of understanding on 14 March this year, would turn out to be a milestone in the state's development.
He said the best technologies would be adopted at the refinery, which would have the capacity of 9 million metric tonnes per annum.
''The refinery is going to make a significant addition to the investment-friendly atmosphere in the state,'' he said, adding that it would also provide immense employment opportunities.
Gehlot also noted that production of petrochemicals such as polyethylene, benzene, toluene and mixed xylene would help the ancillary industries in Barmer, Jodhpur and the nearby areas with raw material and promote new units in various sectors.
New industrial areas would be developed after a green zone in the radius of the complex, he said.
During the four-year construction period, an income of Rs47,000 crore has been projected at the refinery, which would increase to Rs8.78 lakh crore in the operational period.
New employment opportunities will be available to 1.39 lakh people, while the direct tax earnings would be Rs.1.05 lakh crore and induced tax earnings Rs.75,000 crore.
The development in the area surrounding the refinery would be carried out in a planned manner ''for benefiting the generations to come'' and no illegal sale of purchase of land would be allowed, said Gehlot.