An agreement in this regard was signed by the two parties after receiving an approval from the Indian government to go ahead with the planned 9 million metric tonne crude Barmer Petroleum Refinery-cum-Petrochemical Complex.
The new joint venture company named as HPCL Rajasthan Refinery (HRRL) will have the Indian state-owned oil and natural gas company HPCL owning a 74% stake in partnership with the Rajasthan government which will hold a stake of 26%.
Rajasthan Chief Minister Vasundhara Raje said that the proposed oil refinery will produce petroleum and other petrochemical products that are expected to substantially boost the economy of Barmer and the entire state.
The project is also expected to create huge numbers of direct and indirect jobs although specific numbers for the same were not revealed by the Rajasthan government.
According to the Rajasthan government, the oil refinery project would come up on a 4,813 acres site. The project’s construction is expected to be completed in four years.
Upon completion, the Barmer project is anticipated to become the first petro refinery in India to produce BS-VI emission standards. This, the state government says will be an important step in keeping a check on carbon emissions while making a considerable positive impact on environment.
Apart from crude oil refining, the Barmer Petroleum Refinery-cum-Petrochemical Complex will also help in the generation of 270MW power from the waste petcoke produced from its operations.
The project is due to receive an environmental clearance from the Indian Ministry of Environment. After securing all mandatory clearances on scheduled deadlines, the Rajasthan government plans to start construction on the Barmer oil refinery.
Image: The Barmer Petroleum Refinery-cum-Petrochemical Complex will be built at a cost of $6.73bn. Photo: courtesy of supakitmod/Freedigitalphotos.net.
