The Rajasthan government has signed a joint venture agreement with Hindustan Petroleum Corporation Ltd (HPCL) for the upcoming mega petroleum refinery in Barmer at a cost of Rs 43,129 crore. Under the agreement, HPCL will hold 74% stake in the joint venture, HPCL Rajasthan Refinery Ltd, while the state government will hold the rest 26%.
The agreement was signed in presence of Chief Minister Vasundhara Raje by the Secretary, Mines and Petroleum, Aparna Arora and HPCL’s Director (Finance) J Ramaswamy. During the signing ceremony, Water Resources Minister Ram Pratap and Minister of State for Minerals and Petroleum Surendra Pal Singh, Chief Secretary Ashok Jain, HPCL CMD MK Surana and Additional Chief Secretary of the State Mines and Petroleum NC Goyal and other senior officials were present.
Barmer refinery will be the country’s first refinery project to manufacture petro-products of BS-6 standard and will be an environmental friendly project. The project, being set up to prepare petroleum and various types of petro-chemical products from Rajasthan crude oil, will not only strengthen the economy of Barmer but the entire Western Rajasthan.
Under the new conditions, the state will now get 12 percent return on investment (investment income) than the 2 percent fixed in the previous agreement. Western Rajasthan would emerge as the hub of petroleum subsidiaries, which would generate direct and indirect employment opportunities.