Luring the voters, the Centre has showered poll-bound Rajasthan with two key projects – the world’s largest solar power project and a refinery-cum-petrochemical plant.
The Congress-governed State is likely to go to polls in the second half of November with the Election Commission’s announcement expected next week.
Refinery Project
The Cabinet has approved the proposal of Hindustan Petroleum Corporation Ltd (HPCL) for setting up 9-million-tonne-per-annum (mmtpa) greenfield refinery-cum-petrochemical complex in Barmer District in Rajasthan
This will be a joint venture with the Rajasthan State Government and will be named HPCL-Rajasthan Refinery Ltd (HRRL). HPCL will own 74 per cent stake while the balance will be with the State Government.
The cost of the project is estimated at Rs 37,230 crore. The project cost is proposed to be sourced with a debt of 1.5 against equity value of 1.
It will have total equity component of Rs 14,892 crore and debt of Rs 22,338 crore. HPCL will contribute Rs 11,020 crore while the State Government will put Rs 3,872 crore .
HPCL signed a memorandum of understanding on May 14 with the State Government followed by a joint venture agreement in July. The proposed refinery will process 4.5 mt of Mangala Crude being produced by Cairn in the same area and 4.5 mt of Arab/other crude which will be imported.
The Government claims that the project will bring direct and indirect economic benefits to the State. Besides industrialisation, the project will result in substantial increase in income, output, employment and tax earnings of the State, it added.