The cabinet has approved the proposal of Hindustan Petroleum Corporation Limited (HPCL) to set up a 9 million tonnes per annum (mtpa) refinery-cum-petrochemical complex in Rajasthan's Barmer district as a joint venture with the state government.
HPCL will hold 74 per cent equity in the proposed HPCL-Rajasthan Refinery Limited (HRRL), with the Rajasthan government holding 26 per cent.
The project is estimated to cost Rs 37,230 crore. HPCL's equity contribution will be Rs 11,020 crore, with the Rajasthan government providing Rs 3,872 crore. The remaining Rs 22,338 crore will be raised through debt.
"There shall be a direct and indirect economic benefit to the economy of Rajasthan, which shall, besides industrialization, result in substantial increase in income, output, employment and tax earnings of the state," the statement said.
HPCL had signed a JV agreement with the Rajasthan government in July for setting up the refinery.