HPCL Rajasthan Refinery Limited (HRRL) received a substantial financial boost for its upcoming project in Barmer, Rajasthan, as the Rural Electrification Corporation Limited (REC) granted a loan of Rs 47.85 billion.
In a press release, the company stated, “HPCL Rajasthan Refinery Limited (HRRL) executed a loan agreement on 4 July 2023 under a consortium arrangement for Rs 486.25 billion, wherein the share of state-run REC Ltd is Rs 47.85 billion.”
HRRL, a joint venture between HPCL and the Rajasthan government, aims to establish an advanced greenfield refinery cum petrochemical complex in Barmer district, with an estimated project cost of Rs 729.37 billion. The project holds tremendous potential for the economic growth and development of the region.
The project encompasses various components, including the construction of an energy-efficient and environmentally friendly refinery cum petrochemical complex. It also involves the development of pipelines for the transportation of both Rajasthan crude and imported crude, a water transportation pipeline to the refinery site, a captive power plant, and essential storage facilities.
One of the key objectives of the HRRL project is the production of clean fuels in compliance with the BS-VI emission standards. It will contribute to the production of BS-VI grade Motor Spirit (petrol) and BS-VI grade High-Speed Diesel (diesel).
Additionally, the project will generate significant petrochemical products such as Polypropylene, Butadiene, LLDPE, HDPE, Benzene, and Toluene, catering to the growing demand for petroleum and petrochemicals in the Western, Northern, and Central regions of India.
HPCL currently holds a 74% equity stake in HRRL, while the Rajasthan government owns the remaining 26%.