In a first, state-run Power Finance Corporation (PFC) on Thursday said it has extended its financial assistance of Rs 9,187 crore to HPCL Rajasthan Refinery Ltd (HRRL), for its refinery-cum-petrochemical complex in Barmer (Rajasthan).

HRRL will set up a 9 million tonnes per annum (MTPA) greenfield refinery-cum-petrochemical complex at a cost of Rs 72,937 crore. It executed a Rs 48,625-crore loan agreement under consortium arrangement earlier this week, in which its share in the loan agreement is Rs 4,785 crore.

“This is the first project where PFC has extended financial assistance to the refinery and petrochemical sector. Now, PFC is extending its support in nation-building not only through the power sector, but also in the infrastructure segment,” the Maharatna company said.

HRRL is a Joint Venture (JV) company of Hindustan Petroleum Corporation (HPCL) (76 per cent) and the Rajasthan Government (26 per cent).

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The project includes setting up an energy-efficient and environmentally-friendly refinery-cum-petrochemical complex, a pipeline for transportation of both Rajasthan crude and imported crude, a pipeline for transportation of water to the refinery site, a captive power plant to meet the refinery’s power and steam requirements, crude and product storage facilities, township and allied facilities, and utilities.

The project will produce clean fuels such as BS-VI grade Motor Spirit (MS or Petrol) & BS-VI grade High Speed Diesel (HSD or Diesel) and petrochemical products such as Polypropylene, Butadiene, LLDPE, HDPE, Benzene and Toluene.

The project will cater to increased demand for petroleum and petrochemical products in the country, and the Western, Northern and Central parts of India, in particular.

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