On Thursday, the publicly traded Power Finance Corporation (PFC) announced that HPCL Rajasthan Refinery Ltd. had received financing of Rs. 9,187 crore.
According to a business release, this is the first project for which PFC has offered financial support to the refinery and petrochemical industry.
PFC said that in addition to the infrastructure sector, it is expanding its assistance for the development of nations.
“PFC, a Maharatna company and India’s leading NBFC in the power sector, has extended its financial assistance of Rs 9,187 crore to HPCL Rajasthan Refinery Ltd for its 9 MMTPA refinery-cum-petrochemical complex located at Barmer, Rajasthan,” the statement said.
With a total cost of Rs 72,937 crore, HPCL Rajasthan Refinery Limited (HRRL) is building a brand-new refinery and petrochemical complex in Rajasthan’s Barmer district.
On July 4, 2023, HRRL signed a loan deal for Rs 48,625 crore via a consortium structure, with PFC Ltd contributing Rs 9,187 crore.
HRRL is a Joint Venture (JV) between the Rajasthani government and Hindustan Petroleum Corporation Ltd (HPCL). The Rajasthan government owns the remaining 26% of the JV, with HPCL holding the remaining 76%.
The project calls for the construction of an environmentally friendly refinery-cum-petrochemical complex, a pipeline for the transportation of both imported and Rajasthani crude, a pipeline to transport water to the refinery site, a captive power plant, storage facilities for crude and product, a township, and other ancillary facilities and utilities.
Clean fuels including BS-VI grade Motor Spirit (MS or Petrol) and BS-VI grade High-Speed Diesel (HSD or Diesel) as well as petrochemical products like polypropylene, butadiene, LLDPE, HDPE, benzene, and toluene will be produced as part of the project.
The project would meet the country’s rising need for petroleum and petrochemical goods, especially in India’s Western, Northern, and Central regions.
