Rajasthan, HPCL ink pact for Barmer refinery

Jaipur: Rajasthan and Hindustan Petroleum Corporation Ltd (HPCL) today signed an agreement to set up a joint venture company HPCL Rajasthan Refinery Ltd to execute the ambitious oil refinery project in Barmer.The green field refinery-cum-petrochemical complex is to be set up in Pachpadra on a government land with an estimated cost of Rs 37,229 crore and scheduled to be set up in four years.[caption id="attachment_949135" align="alignleft" width="380"]

An oil refinery. Reuters[/caption]"After this agreement, a joint venture company will be set up and thereafter foundation laying ceremony will take place. Best technologies will be brought here and there will be development of the state as a whole after the project is complete," HPCL chairman and managing director Roy Choudhury said at a joint press conference with the state government. Chief Minister Ashok Gehlot asked the company officials to work in a time-bound manner in order to set up the refinery in stipulated time period of four years. He also suggested them to start process to train local level people for employment purpose. Asserting that fiscal parameters of the state were well under limits, Gehlot said that the state has investment-friendly environment and setting up of the refinery will be a milestone. Referring to a recent Assocham report which places Rajasthan on the fourth position from investment point of view, Gehlot said that the state would be higher in rank if the investment of refinery is taken into account. The chief minister also informed that he has directed chief secretary to make sure that the development around the refinery area, both in residential and commercial/industrial, is in planned manner with no illegal sale or purchase of the lands. KV Rao, director finance and Sudhansh Pant, secretary (mines), Rajasthan, signed the agreement.HPCL and the state government had on 14 March this year signed an MoU for setting up the 9 MMTPA oil refinery. The proposed refinery, in which HPCL and GoR have share of 74 and 26 percent, respectively, will source crudes from Rajasthan oil fields and other imported crudes. The refinery will produce various petroleum and pro-chemical products.It was earlier proposed to be set up in Leelala village but, due to locals' opposition over the compensation for land acquisition, the location of the project was shifted to Pachpadra in the same district of Barmer. PTI