Rajasthan State Industrial Development and Investment Corporation (RIICO) will invest Rs 750 in equity as a joint shareholder of Rajasthan government in the HPCL Rajasthan Refinery Limited (HRRL) where oil major Hindustan Petroleum has 74% equity share and Rajasthan government owns 26%.
The Hindustan Petroleum, which is the major shareholder will pump in Rs 19,600 crore in equity in this ambitious project whose cost has gone up from Rs.43,129 Crore to Rs.79,459 Crore since its inception.
“RIICO's partnership will support the Rajasthan government's long-term equity commitment in one of the state's biggest ever industrial investments projects and will give new impetus and direction to industrial development, investment promotion and employment generation in the state,” said a senior RIICO official.
RIICO has contributed to the project because the cost of the refinery has shot up resulting in rise in the contribution of the state government.
“The state government asked RIICO to put in Rs 750 crore as equity investment and serve as joint shareholder along with the state government. Due to this arrangement, RIICO will get shares in the refinery project and will get dividend in profits,” the official informed.
Implementation Strategy and Targets:
The 9 million metric tonne per annum (MMTPA) HRRL Refinery is a highly complex refinery with more than 26% Petrochemical product slate. Together with production of 1 MMTPA of Petrol, 4 MMTPA of Diesel, it would produce 1 MMTPA of Polypropylene, 0.5 MMTPA of LLPDE (Linear Low Density Polyethylene), 0.5 MMTPA of HDPE (High Density Polyethylene) and about 0.4 MMTPA of Benzene, Toluene and Butadiene. All these Products are critical to our energy and industrial ecosystem in sectors like transportation, pharma, paints, packaging industries etc. The project will lead to energy independence and reduce import dependence of petrochemical sector.
Major Impact, including Employment Generation Potential:
HRRL is an important project considering the growing energy needs and the petrochemical requirements of the Country and speciality products production, thereby reducing the Country's dependence on imports, which will result in saving foreign exchange. Moreover, this project will also contribute towards industrialization of a backward area, usage of locally available Mangala crude and help in promoting India as a refining hub. During the course of execution of this project, HRRL has generated employment opportunities of approximately 25,000 workmen deployed by various stakeholders engaged in the construction of the Refinery Units.
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