In a significant development, Power Finance Corporation (PFC) announced that it has provided a financial assistance of ₹9,187 crore to HPCL Rajasthan Refinery Ltd. This marks a significant milestone as PFC extends its support to the refinery and petrochemical sector for the first time, solidifying its role in the nation’s infrastructure growth.
PFC, a leading Non-Banking Financial Company (NBFC) in the power sector and a Maharatna company, has played a vital role in the development of the power sector in India. With this venture, PFC expands its horizons and demonstrates its commitment to contributing to the nation’s progress through financial assistance in the infrastructure segment.
The financial support extended by PFC will aid the HPCL Rajasthan Refinery Ltd in its ambitious project to establish a 9 Million Metric Tonnes Per Annum (MMTPA) refinery-cum-petrochemical complex in Barmer, Rajasthan. The estimated project cost for this venture stands at a staggering ₹72,937 crore.
HPCL Rajasthan Refinery Limited (HRRL), a Joint Venture between Hindustan Petroleum Corporation Ltd (HPCL) and the Rajasthan government, will spearhead the project. HPCL holds a majority stake of 76% in the joint venture, while the remaining 26% is owned by the Rajasthan government.
The proposed refinery-cum-petrochemical complex in Barmer district, Rajasthan, will be constructed adhering to environmentally friendly practices. The complex will comprise a pipeline for the transportation of both Rajasthan crude and imported crude, a water transportation pipeline to the refinery site, a captive power plant, crude and product storage facilities, township and allied infrastructure, and utilities.
The primary objective of the project is to produce clean fuels, including BS-VI grade Motor Spirit (Petrol) and BS-VI grade High-Speed Diesel (Diesel), as well as various petrochemical products such as Polypropylene, Butadiene, LLDPE, HDPE, Benzene, and Toluene. These products will cater to the increasing demand for petroleum and petrochemicals not only in the country but also in the Western, Northern, and Central regions of India.
On July 4, 2023, HRRL successfully executed a loan agreement under a consortium arrangement, securing ₹48,625 crore, with PFC Ltd contributing ₹9,187 crore to the financing arrangement.
The project holds immense potential for driving economic growth, generating employment opportunities, and enhancing the energy infrastructure of the country. It aligns with the government’s vision of attaining self-sufficiency in the energy sector and promoting sustainable development.
