Jaipur, Mar 14 (IBNS) The Hindustan Petroleum Corporation Limited (HPCL) and the Government of Rajasthan signed a Memorandum of Understanding (MoU) at Jaipur on Thursday on setting up a refinery-cum-petrochemical complex in Barmer, Rajasthan.
The project will be set up in joint venture between M/S HPCL, M/S Rajasthan State Refinery Limited and other equity partners.
The signing ceremony was held in the distinguished presence of the Union Minister of Petroleum and Natural Gas M. Veerappa Moily, Chief Minister Ashok Gehlot, Union Minister of State of Petroleum and Natural Gas P. Lakshmi.
Senior officials from Ministry of Petroleum and Natural Gas, Government of India and HPCL were also present on the occasion.
Subhash Pant, Secretary Mines and Petroleum, Government of Rajasthan and K.Murli, Director (Refineries) M/S HPCL signed the MOU on behalf of Government of Rajasthan and M/S HPCL respectively.
The refinery will be set up at an estimated capital investment of Rs. 37,230 crores.
The project is estimated to take about 4 years for going on stream. The refinery will process the locally available crude as well as other crudes.
The refinery-cum-petrochemical complex is designed to produce motor fuels with latest environmental specifications and wide range of petrochemicals which will have a substantial impact on the economy of Rajasthan.
Speaking on the occasion, Moliy appreciated the untiring efforts of the Chief Minister of Rajasthan and expressed his pleasure on Rajasthan realizing a long cherished dream of having a refinery in the state.
He stated that the huge investment associated with the project is expected to usher in economic growth of the state and will be a boon to Rajasthan.
He underlined that the signing of the MoU is the beginning of a new phase of development and growth for Rajasthan.
He also stated that the proposed refinery has the potential to become an anchor industry for developing downstream and other sector industries in and around the region.
Highlighting the unique aspects of the projects, Moily stressed that the proposed complex will be the first such complex specifically designed to produce petrochemicals from the indigenous crude oil.
He appreciated HPCL for taking the initiative in developing this project and for adopting innovative approach in achieving the best utilization of the indigenous crude, maximizing the value from the project through the production of petrochemicals for improving project viability.
Congratulating the people of Rajasthan and stake holders of the project, he wished the project proponents HPCL and its partners all the success for the completion of the project.
Gehlot while thanking the Ministry of Petroleum and Natural Gas described the occasion as a historic one for the state of Rajasthan which will mark the beginning of a transformation of the state in terms of industrial and economic growth and congratulated the citizens of Rajasthan on this momentous occasion.
Highlighting the significant features of crude production in Rajasthan oil fields, he justified the need for a refinery in Rajasthan for economic opportunities.
Gehlot appreciated the efforts of HPCL in conceiving the project as a refinery-cum-petrochemical complex which facilitates best utilization of local crude and fosters better economic viability.
He opined that the project will produce various petrochemical products to impart robustness to the bottom line of the complex.
People of Rajasthan will have access to the petroleum products produced within the state which will be available at competitive prices in a future competitive scenario, he said.
Panbaka Lakshmi appreciated the efforts of the Chief Minister of Rajasthan and assured the Government of Rajasthan and HPCL the necessary support from Ministry of Petroleum and Natural Gas while wishing them all the success in their collaboration.
Rajasthan Petroleum and Natural Gas Minister Rajender Pareek in his welcome speech said that the agreement on setting up refinery in Barmer has fulfilled the demand of the people of Rajasthan and it will speed up economic development of the state.
Chairman cum Managing Director, HPCL S. ROY Chaudhary while giving overview of the project explained that the 9 MMTPA refinery-cum-petrochemicals will be a state-of-the-art complex and will bring benefit to the state of Rajasthan and its people.
He requested for continued help and support from the Government of Rajasthan for speedy completion on fast track basis.
Sudhir Bhargav, Special Secretary, Union Ministry Petroleum and Natural Gas, also spoke on the occasion.