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Rajasthan govt signed JV agreement for refinery project with HPCL

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On August 17, 2017, Rajasthan State Government and public sector oil firm Hindustan Petroleum Corporation Limited (HPCLinked an agreement to form a joint venture company for Barmer petroleum refinery and petrochemical complex.
Background Information:

  • On April 19, 2017, after prolonged negotiations that lasted over three years, Rajasthan State Government signed a revised MoU with HPCL for a 9 million metric tonne crude oil refinery at Barmer that would require investments of Rs 43,129 crore and produce fuels meeting BS-VI specifications.
  • As per the claims made by the present Rajasthan Government, revised deal will save the state Rs 40,000 crore with annual viability gap funding of Rs 1,123 crore for 15 years instead of Rs 3,736 crore as per the previous MoU that former CM Ashok Gehlot signed with HPCL.

More Details about JV agreement between Rajasthan Government and HPCL:

  • Principal Secretary Mines and Petroleum, Aparna Arora and Director (Finance) of HPCL, J. Ramaswami signed the JV agreement respectively on behalf of the Rajasthan State Government and the HPCL.
  • As per the proposed plan, the refinery project would be established in 4,813 acres of land area.
  • Tender process for the boundary wall for this has been initiated.
  • A 270 MW power would be generated from the waste petcoke generated from the refinery.
  • A green zone would be established in the refinery campus and a new industrial area would also be developed.
  • Rajasthan Chief Minister Vasundhara Raje has mentioned that after receiving all necessary clearances on slated deadlines, ground breaking ceremony would be solemnised for start of the actual work for the refinery.
  • Rajasthan State Government is aiming to start and complete the construction work in four years.

Quick Facts about Hindustan Petroleum Corporation Limited (HPCL):

  • HPCL is an Indian state-owned oiland natural gas company.
  • It was founded in year 1974.
  • Headquarters of HPCL is located in Mumbai.
  • M K Surana is the current CEO, Chairman, Managing Director of HPCL.