Prime Minister Narendra Modi is expected to lay the foundation stone of Barmer Refinery-cum-Petrochemical complex sometime in the second half of December.
The Rajasthan government has been working on the war-footing to launch the project at the earliest. The reason is that the previous Gehlot government, which claims the refinery its brainchild, had signed an MoU with HPCL (Hindustan Petroleum Corporation Limited) before the Assembly elections in 2013 but failed to turn into reality.
When Raje came into power, she said that state needed to renegotiate the project. After almost three years of negotiations, the state government signed a new MoU with
HPCL in April this year for setting up the complex.
As per the agreement, the HPCL has a 74 per cent stake while the state government holds a 26 per cent stake in the new firm which is called HPCL Rajasthan Refinery Limited (HRRL). The total cost of the project is Rs 431.29 billion. Raje at the time of signing MoU claimed that new agreement led to significant saving of Rs 400 billion. Also, the state would receive 12 per cent return on investment instead of earlier 2 per cent mentioned in Gehlot’s agreement.