Power Finance Corporation lends Rs 9,187 crore to HPCL Rajasthan Refinery

7 Jul 2023 , 11:08 AM

Power Finance Corporation (PFC) on Thursday announced that it has provided financial assistance worth Rs 9,187 crore to HPCL Rajasthan Refinery. The company has extended its financial assistance for the first time to the refinery and petrochemical sectors.

PFC said that it is contributing to nation-building not only via the power sector but also through the infrastructure sector.

The said assistance will be used for HPCL’s 9 MMTPA refinery-cum-petrochemical complex situated at Barmer, Rajasthan.

Reportedly, HPCL is in the process to set up a green-field refinery-cum-petrochemical complex in Rajasthan’s Barmer District. It has an estimated project cost of Rs 72,937 crore.

On July 4, 2023, under a consortium arrangement, HRRL executed a loan agreement for Rs 48,625 crore, out of which PFC Ltd.’s share is Rs 9,187 crore.

Hindustan Petroleum Corporation Ltd (HPCL) and the government of Rajasthan formed a JV called HRRL. HPCL owns 76% of the joint venture, with the Rajasthan government owning the remaining 26%.

The project entails the construction of an environmentally friendly refinery-cum-petrochemical complex, a pipeline for the transportation of both Rajasthan crude and imported crude, a pipeline for the transportation of water to the refinery site, township and allied facilities and utilities, crude and product storage facilities, and a captive power plant.

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