Power Finance Corp funds HPCL Rajasthan Refinery with Rs 9187 Cr
In a significant development, Power Finance Corporation (PFC), a state-owned organization, announced its financial assistance of Rs 9,187 crore to HPCL Rajasthan Refinery Ltd. This marks PFC’s first foray into extending support to the refinery and petrochemical sector, highlighting its commitment to nation-building in both power and infrastructure segments.
As India’s leading non-banking financial company (NBFC) in the power sector and a Maharatna company, PFC’s funding will aid the establishment of a 9 MMTPA refinery-cum-petrochemical complex in Barmer, Rajasthan by HPCL Rajasthan Refinery Ltd. The project’s total cost amounts to Rs 72,937 crore, with PFC contributing a substantial share of Rs 9,187 crore.
HRRL is a joint venture between Hindustan Petroleum Corporation Ltd (HPCL) and the Rajasthan government, with HPCL holding a 76 percent stake and the Rajasthan government holding the remaining 26 percent. HRRL’s ambitious venture involves the creation of an environmentally friendly refinery-cum-petrochemical complex in the Barmer district.
The project encompasses various components such as a dedicated pipeline for transporting both Rajasthan crude and imported crude, a water transportation pipeline, a captive power plant, storage facilities for crude and products, a township, and supporting utilities. Its primary objective is to produce cleaner fuels like BS-VI grade Motor Spirit (Petrol) and High-Speed Diesel (Diesel), along with essential petrochemical products such as Polypropylene, Butadiene, LLDPE, HDPE, Benzene, and Toluene.
This strategic endeavor aims to meet the growing demand for petroleum and petrochemical products across India, with a specific focus on the Western, Northern, and Central regions. By facilitating the production of cleaner fuels and essential petrochemicals, the project will contribute to the country’s energy landscape and address the needs of various sectors.
PFC’s financial backing of the HPCL Rajasthan Refinery signifies its commitment to supporting critical infrastructure projects and fostering growth in the energy sector. With this investment, PFC continues to play a vital role in driving India’s progress and ensuring a sustainable future.
About Power Finance Corp:
Power Finance Corporation Ltd. is an Indian government-owned central public sector company, operating under the Ministry of Power, Government of India. It was founded in 1986 and serves as the financial pillar of the Indian power sector. As of September 30, 2018, PFC’s net worth amounts to INR 383 billion.
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