Hindustan Petroleum (HPCL) has secured a loan of INR47.85bn ($580m) from REC towards the construction of HPCL Rajasthan Refinery (HRRL)’s green field refinery cum petrochemical complex in Rajasthan, India.
REL is an Indian government-owned company under the Ministry of Power, which is focused on power sector financing and development across India. Its loan has been extended as part of a consortium arrangement for INR48.62bn ($590m).
HPCL Rajasthan Refinery, which is a joint venture of HPCL (74%) and the Rajasthan government (26%), aims to build a nine million metric tonnes per annum (MMTA) refinery complex.
The downstream project is estimated to cost INR729.4bn ($8.9bn). It is planned to be built at Pachpadra in Barmer district.
According to the Indian Ministry of Power, the project also involves the installation of a pipeline to transport crude oil from Rajasthan as well as imported crude. A pipeline will also be built for transporting water to the refinery site.
Besides, a captive power plant will be set up for fulfilling refinery power and steam needs.
Additionally, the HPCL Rajasthan Refinery project will include crude and product storage facilities, a township, and associated facilities and utilities.
The refinery and petrochemical project is designed for producing clean fuels like BS-VI grade Motor Sprit (MS or Petrol) and BS-VI grade High-Speed Diesel (HSD or Diesel). It will also produce petrochemical products like polypropylene, linear low-density polyethylene (LLDPE), butadiene, high-density polyethylene (HDPE), Toluene, and Benzene.
The Indian Ministry of Power stated: “The Project will help serve the increased demand of petroleum and petrochemical products in the country and the Western, Northern and Central parts of India in particular.”
