Agreement with HPCL for Barmer refinery will benefit Rajasthan government

Hindustan Petroleum Corporation Ltd. has entered into a joint venture agreement with the Government of Rajasthan for an upcoming refinery at Barmer, the cost of which will be Rs 43,129 crore. As per the agreement, HPCL will have a 74% stake in the JV titled HPCL Rajasthan Refinery Ltd. while the state government will hold the balance 26%.
 
According to Rajasthan Chief Minister Vasundhara Raje, as a result of the renegotiation with HPCL, a significant saving of Rs 40,000 crore has been ensured in the project cost. Under the new terms, the state will now get 12% return on investment (investment income) than the 2% fixed in the previous agreement.
 
The Barmer refinery will be the country’s first refinery project to manufacture petroleum products of BS-6 standard and will be environmentally friendly. Meanwhile, the stock on the bourses gained 0.75% at Rs 437.40 per share attracting a total traded quantity of 0.47 lakh shares.