REC extends Rs 4,785 cr for HPCL Rajasthan refinery's project in Barmer

New Delhi [India], July 4 : The Rural Electrification Corporation Limited (REC) on Tuesday extended a loan of Rs 4,785 crores to HPCL Rajasthan Refinery Limited (HRRL), for setting up a green field refinery cum petrochemical complex in Barmer district, Rajasthan.

"The loan has been extended as part of a consortium arrangement for Rs 48,625 crores, wherein the share of REC Limited is Rs 4,785 crores. The refinery cum complex will have a capacity of 9 Million Metric Tonnes per Annum (MMTA), and would entail a total project cost of Rs 72,937 crores," the Ministry of Power said.

According to the release, HRRL is a Joint Venture company of Hindustan Petroleum Corporation Limited (HPCL) and the Government of Rajasthan, incorporated on September 18, 2013. HPCL holds a 74 per cent equity stake in HRRL while the Government of Rajasthan holds the remaining 26 per cent.

Besides setting up an energy-efficient and environment-friendly refinery cum petrochemical complex with a capacity of 9 MMTPA, the project involves setting up a pipeline for transportation of both Rajasthan Crude and imported crude; a pipeline for transportation of water to the refinery site; a captive Power Plant for meeting refinery power and steam requirement; crude and product storage facilities; and township and allied facilities and utilities, the release stated.

The Ministry further stated that the Project aims to produce clean fuels such as BS-VI grade Motor Sprit (MS or Petrol) and BS-VI grade High-Speed Diesel (HSD or Diesel) and Petrochemical products such as Polypropylene, Butadiene, LLDPE, HDPE, Benzene and Toluene.

The Project will help serve the increased demand for petroleum and petrochemical products in the country and the Western, Northern and Central parts of India, it said.