REC extends ₹4,785 crore loan for HPCL Rajasthan Refinery’s project in Barmer

New Delhi: HPCL Rajasthan Refinery Limited (HRRL) on Tuesday secured a significant financial boost for its upcoming project in Barmer, Rajasthan, as the Rural Electrification Corporation Limited (REC) extended a loan of ₹4,785 crore. 

“HPCL Rajasthan Refinery Limited (HRRL) executed a loan agreement on 4 July 2023 under a consortium arrangement for Rs.48,625 crore wherein the share of state-run REC Ltd is ₹4,785 crore,” the company said in a press release.

HRRL, a joint venture between HPCL and Rajasthan government, aims to establish a state-of-the-art greenfield refinery cum petrochemical complex in Barmer district with an estimated project cost of ₹72,937 crore. The project holds immense promise for the region’s economic growth and development.

The project encompasses several components, including the construction of an energy-efficient and environmentally friendly refinery cum petrochemical complex. It also includes the development of pipelines for the transportation of both Rajasthan crude and imported crude, a water transportation pipeline to the refinery site, a captive power plant, and essential storage facilities.

One of the key objectives of the HRRL project is the production of clean fuels in compliance with the BS-VI emission standards. It will contribute to the production of BS-VI grade Motor Spirit (petrol) and BS-VI grade High-Speed Diesel (diesel). 

Additionally, the project will generate significant petrochemical products such as Polypropylene, Butadiene, LLDPE, HDPE, Benzene, and Toluene, catering to the growing demand for petroleum and petrochemicals in the Western, Northern, and Central regions of India.

HPCL currently holds a 74% equity stake in HRRL, while the Rajasthan government owns the remaining 26%.