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HPCL Rajasthan Refinery Limited executes a loan agreement under a consortium arrangement

Jul 5, 2023

By: BlinkX Research Team

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. The project entails building an energy-efficient and environmentally friendly refinery/petrochemical complex with a nine million metric tonne per annum (MMTPA) capacity, as well as constructing a pipeline for the transportation of crude oil from both domestic and foreign sources.

It also comprises a pipeline to bring water to the refinery site, a captive power plant to supply the refinery's needs for steam and power, storage facilities for crude and products, township and related amenities, and utilities. The project is designed to meet the rising demand for petroleum and petrochemical products in the Northern, Western, and Central regions of India by 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.

A new refinery and petrochemical complex being built by HRRL will cost Rs 72,937 crores to construct. 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.

Source: Media Reports