REC Limited supports HPCL Rajasthan Refinery with major consortium loan

REC Limited, a Maharatna CPSU under the Ministry of Power, has extended a substantial loan of INR 4,785 crores to HPCL Rajasthan Refinery Limited (HRRL) to finance the establishment of a greenfield refinery and petrochemical complex in the Barmer district of Rajasthan.

The loan constitutes part of a larger consortium arrangement amounting to INR 48,625 crores, of which REC Limited’s contribution is INR 4,785 crores. The proposed refinery and petrochemical complex, with a projected capacity of 9 Million Metric Tonnes per Annum (MMTPA), comes with an estimated total project cost of INR 72,937 crores.

HPCL Rajasthan Refinery Limited is a joint venture between Hindustan Petroleum Corporation Limited (HPCL) and the Government of Rajasthan, established on September 18, 2013. In this joint venture, HPCL holds a 74% equity stake, while the remaining 26% is held by the Government of Rajasthan.

REC Limited funds HPCL Rajasthan Refinery with INR 4,785 crores loan. Photo courtesy of Press Information Bureau.

The project entails the development of an energy-efficient, eco-friendly refinery and petrochemical complex boasting a 9 MMTPA capacity. It also includes the establishment of a pipeline for the transportation of both Rajasthan Crude and imported crude, a pipeline for water transportation to the refinery site, a captive power plant for meeting the refinery’s power and steam requirement, crude and product storage facilities, along with township and allied facilities and utilities.

The project aims to generate clean fuels such as BS-VI grade Motor Sprit (Petrol) & BS-VI grade High-Speed Diesel (Diesel), along with petrochemical products like Polypropylene, Butadiene, LLDPE, HDPE, Benzene, and Toluene. This development is expected to cater to the increasing demand for petroleum and petrochemical products across India, specifically in the Western, Northern, and Central regions.

With over fifty years of operations, REC Limited is a prominent NBFC focusing on Power Sector Financing and Development across India. It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives, and private sector utilities. REC’s activities span the complete power sector value chain, financing various types of projects including Generation, Transmission, Distribution, and Renewable Energy. Currently, REC’s funding powers every fourth bulb in India.