REC Ltd's Rs 4,785 cr loan to HPCL Rajasthan Refinery for greenfield project in Barmer
New Delhi: REC Ltd, formerly known as Rural Electrification Corporation, has extended a loan of Rs 4,785 crores to HPCL Rajasthan Refinery Limited (HRRL), for setting up a green field refinery cum petrochemical complex in Barmer district, Rajasthan.
The state-run company is primarily engaged in providing finance for rural electrification projects across India and provides loans to Central/ State Sector Power Utilities, State Electricity Boards, Rural Electric Cooperatives, NGOs and Private Power Developers.
The loan has been extended as part of a consortium arrangement for Rs 48,625 crores, wherein the share of REC Limited is Rs 4,785 crores.
The refinery cum complex will have a capacity of 9 Million Metric Tonnes per Annum (MMTA), and would entail a total project cost of Rs 72,937 crores.
HRRL is a Joint Venture company of Hindustan Petroleum Corporation Limited (HPCL) and the Government of Rajasthan, incorporated on 18th September 2013. HPCL holds 74% equity stake in HRRL while the remaining 26% is held by the Government of Rajasthan.
Besides setting up an energy-efficient and environment-friendly refinery cum petrochemical complex with a capacity of 9 MMTPA, the project involves setting up a pipeline for transportation of both Rajasthan Crude and imported crude; a pipeline for transportation of water to the refinery site; a captive Power Plant for meeting refinery power and steam requirement; crude and product storage facilities; and township and allied facilities and utilities.
The project aims to produce clean fuels such as BS-VI grade Motor Sprit (MS or Petrol) & BS-VI grade High-Speed Diesel (HSD or Diesel) and Petrochemical products such as Polypropylene, Butadiene, LLDPE, HDPE, Benzene and Toluene.
It will help serve the increased demand of petroleum and petrochemical products in the country and the Western, Northern and Central parts of India in particular.
REC Limited, a Maharatna CPSU under the Ministry of Power, is an NBFC focusing on Power Sector Financing and Development across India. Established in 1969, REC Limited has completed over fifty years of operations.
It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities.
Its business activities involve financing projects in the complete power sector value chain; for various types of projects including Generation, Transmission, Distribution and Renewable Energy. REC’s funding illuminates every fourth bulb in India.
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