Jaipur, August 18: With an aim to set up a joint venture company for setting up the huge Petroleum Refinery-cum-Petrochemical Complex at Barmer, Rajasthan government on Thursday signed an agreement with the Hindustan Petroleum Corporation Limited (HPCL).
Notably, HPCL and Rajasthan came together to set up a Petroleum Refinery-cum-Petrochemical Complex with the total cost of Rs 43,129 crore at Barmer. HPCL will have a 74 percent stake while the state government has 26 percent stake in the joint venture firm that will be known as HPCL Rajasthan Refinery Limited (HRRL).
The agreement between State government and HPCL was signed at CM residence in presence of Chief Minister Vasundhara Raje. Principal Secretary Mines and Petroleum Aparna Arora and Director (Finance) of HPCL J Ramaswami signed the joint-venture agreement respectively on behalf of the state government and the HPCL.
On this occasion, CM Vasundhara Raje directed the officials to proceed further on the project on equally fast pace as soon as the environmental clearance was received from the Union Ministry of Environment. CM Raje also noted that fresh negotiations between the officials of the state government and the HPCL led to significant savings of Rs 40,000 crore. However, Rajasthan will receive 12 percent Return on Investment instead of earlier 2 percent.
The CM further noted that this would be the first petro-refinery in the country to produce BS-VI emission standards. This would be a major step towards controlling carbon emissions and have a substantial impact on the environment.
She said local youth through ITIs and skill development centres would be trained to get them employment in refinery and ancillary industries. The government was exploring possibilities of setting up a petroleum institute in the western Rajasthan.
CM Raje further said that this project of refining Rajasthan's Crude oil to produce petroleum and other petrochemical products would substantially strengthen the economy of not only Barmer but entire Rajasthan.
The Petroleum Refinery-cum-Petrochemical Complex at Barmer project would be established in 4,813 acres of land area. The tender process for the boundary wall for this has been initiated. The entire construction work of this project would be finished in a record time of four years.