Hindustan Petroleum Corporation Ltd (HPCL) and Government of Rajasthan have signed a revised memorandum of understanding (MOU) for HPCL’s proposed 9 million metric tonnes per annum (MMTPA) grass root refinery in the state, paving the way for the resumption of project, which was first announced four years ago.
In March 2013, the then Congress-led state government had entered into an MoU with HPCL for establishing the complex in Barmer district at an estimated cost of over Rs 37,230 crores ($6 billion). After this, a JV agreement was signed in July 2013 between HPCL and the state government. The refinery-cum-petrochemical complex was to process 4.5 million tonnes of Mangala crude and 4.5 million metric of Arab or other crude oil.
However, the project failed to take off as the BJP government of the state, which came to power in December 2013, had been demanding a review as it felt that the previous proposal was not in favour of Rajasthan.
Though, HPCL’s yesterday statement do not spell out the revised financial details of the project, experts believe it will cost more than the earlier estimate of $6 billion.
