City Reports

Raj govt aims to lay foundation stone for Barmer oil refinery by September

The Rajasthan government has inked a JV pact with HPCL

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February 1, 2018, 3:56 pm

pachpadra barmer refinery agreement

A joint venture agreement was signed between HPCL and Rajasthan government for refinery in Barmer's Pachpadra. Image credit: Twitter

Jaipur: With the signing of Joint Venture (JV) agreement with HPCL, the Rajasthan government now wants to start work on the Barmer Petroleum Refinery-cum-Petrochemical Complex without any delay.

The government hopes to get an NOC from the Ministry of Environment early next month. The government will try to work out a date for an official foundation stone laying ceremony by the end of September. Prime Minister Narendra Modi will preside over the ceremony.

The Rajasthan government on Thursday inked a pact with HPCL for the oil refinery, proposed to come up in Barmer’s Pachpadra. The Union Government gave approval to the Barmer Petroleum Refinery-cum-Petrochemical Complex on Wednesday.

By November, 2018 when the state is expected to go to polls, the government aims to complete the following works:

  • Environment clearance from the Union Ministry of Environment by September 15
  • Inviting tender for the construction of a boundary wall around 4813 acres of land.
  • A water pipeline
  • Connectivity of crude oil pipeline
  • Route survey for the pipeline from refinery to Gujarat port
  • Tender for the purchase of steel and fabrication
  • Orders to be placed for machines that are to be imported from abroad

Under the project, a crude oil pipeline (50-60 km in length) and a water pipeline (nearly 200 km in length) will be laid. With a capacity of producing 9 million metric ton oil per annum, the refinery will cost Rs 43,149 crore. HPCL’s share will be 75 percent, while rajasthan government’s equity will be 26 percent. The state government will pay Rs 3738 crore for its 26% equity. The government will give interest free loan (the viability gap funding) of Rs 16,845 crore to HPCL. The viability gap funding (VGF) will be Rs 3,736 crore annually. This will be paid over a period of five years by the government.

Related stories:

Joint venture agreement signed for Barmer refinery

New MoU for Barmer Refinery: Important things you should know

New MoU for Barmer’s Pachpadra refinery signed in Jaipur

Progress of work on Barmer’s Pachpadra refinery to be reviewed monthly

First published: August 18, 2017