New Delhi, Sep 20 (ANI): The Union Cabinet today approved setting up of a nine million tonne refinery-cum-petrochemical complex by Hindustan Petroleum Corporation Limited (HPCL's) in Barmer, Rajasthan.
Information and Broadcasting Minister Manish Tewari said, the 37,229 crore rupees project will ensure augmenting refinery capability of the country.
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 the Govt. of Rajasthan.
The cost of the project is estimated at Rs. 37,230 crore. The project cost is proposed to be sourced with a detbt/equity ratio of 1.5:1. Total equity component is Rs.14,892 crore and debt is Rs.22,338 crore. HPCL's equity contribution is Rs.11,020 crore at 74 percent equity and Govt. of Rajasthan's equity contribution is Rs.3,872 crore at 26 percent.
M/s. HPCL has signed a Memorandum of Understanding on 14th May, 2013 with Govt. of Rajasthan in this regard. HPCL has subsequently also signed a JV agreement with Govt. of Rajasthan on 11th July, 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).
There shall be a direct and indirect economic benefit to the economy of Rajasthan, which shall, besides industrialization, result in substantial increase in income, output, employment and tax earnings of the State. (ANI)