State-run Rural Electrification Corporation or REC has entered into a loan agreement with HPCL Rajasthan Refinery or HRRL for Rs. 48,625 crore. Under the project, clean fuels will be produced such as BS-VI grade High-Speed Diesel, BS-VI grade Motor Spirit and products of petrochemicals such as Butadiene, HDPE, LLDPE, Toluene, Benzene and Polypropylene.
As per the agreement, a loan of Rs. 4785 crores will be provided by REC to HRRL in Rajasthan.
The agreement also includes developing a refinery and a petrochemical complex with a volume of 9mn tonnes per annum for Rs. 72,937 crore in Rajasthan’s Barmer district. The project also includes creation of a pipeline for water transportation till the refinery site and a pipeline set up for imported and Rajasthan crude transportation. It also includes making of a captive power plant for steam and refinery power requirements, facilities for product and crude storage and utilities, allied facilities and township.
The project shall cater to the increasing demand of petrochemical and petroleum products in India especially in Central, Western and Northern parts.
HRRL is a joint venture between the Rajasthan Government and the Hindustan Petroleum Corporation or HPCL which was developed on September 18, 2013. While 26% is with the Rajasthan Government, 74% is with HPCL.
