Hindustan Petroleum Corporation Limited Rajasthan Refinery Limited (HRRL) has executed a loan agreement under consortium arrangement for Rs. 48,625 crores, where state-run REC Limited has extended a loan of Rs. 4,785 crores for the project in Barmer.

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The project includes setting up of an energy-efficient & environment-friendly refinery cum petrochemical complex with a capacity of nine Million Metric Tonnes per Annum (MMTPA), setting up of a pipeline for transportation of imported as well as locally sourced crude oil.

It further includes a pipeline for transportation of water to the refinery site, a captive power plant to meet the refinery's power and steam requirements, crude and product storage facilities, township and allied facilities and utilities.

The project is aimed at producing BS-VI grade Motor Spirit (MS or Petrol) & High-Speed Diesel (HSD) as well as petrochemical products like Polypropylene, Butadiene, Linear Low-Density Polyethylene (LLDPE), High Density Polyethylene (HDPE), Benzene and Toluene and is slated to cater to the increased demand of petroleum and petrochemical products in the Northern, Western and Central parts of India.

HRRL is setting up a green field refinery cum petrochemical complex at a Project Cost of Rs 72,937 crores.

HRRL is a joint venture (JV) of Hindustan Petroleum Corporation Limited (HPCL) and the Government of Rajasthan incorporated on September 18, 2013, where HPCL holds an equity stake of 74 percent, and the state government of Rajasthan holds a stake of 26 percent.

In February 2023, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said that HRRL is slated to start operations in 2024. Stating that the refinery will be poised to produce 2.4 Metric Tonnes (MT) of petrochemicals to reduce India's import bill, he added that the project will help achieve the country's target of 450 MMTPA capacity by 2030.

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First Published:Jul 4, 2023 8:08 PM IST