Jaipur, April 18: In order to create more employment, state-run oil marketer Hindustan Petroleum Corporation (HPCL) on Monday announced its decision to resume work on its Rajasthan oil refinery. Notably, HPCL will also sign the revised MOU with Government of Rajasthan for implementation of the project.
Rajasthan oil refinery costs over 41,000-crore and the board of HPCL agreed on reduced fiscal incentives from the state government. The company said, "HPCL Board at its meeting held today has approved a resumption of Rajasthan refinery project and signing of revised MoU with the Government of Rajasthan for implementation of the project." However, the company didn’t give any further details.
Whereas, Oil Minister Dharmendra Pradhan had earlier this month stated that fiscal incentives for the project have been revised and a memorandum of understanding (MoU) is likely to be signed in Jaipur later this month. "The fiscal package negotiated by the previous (Congress) government had put a big burden on Rajasthan. Now, that has been balanced," he added.
Interestingly, shares of HINDUSTAN PETROLEUM CORPORATION LTD. was last trading in BSE at Rs.557.9 as compared to the previous close of Rs. 559.1. The total number of shares traded during the day was 128423 in over 2404 trades. The stock hit an intraday high of Rs. 567 and the intraday low of 554.05. The net turnover during the day was Rs. 72004704.
However, the project, which has been in the works for nearly five years, is projected to cost Rs 41,000-42,000 crore, up from the previous estimate of Rs 37,320 crore. HPCL, in March 2013, had signed a MoU with the Rajasthan government for setting up the refinery-cum-petrochemical complex in the Thar desert near the oil discoveries made by Cairn IndiaBSE 1.65 %.