The infamous Barmer refinery of Rajasthan is not a figment of imagination anymore. After much arguments, negotiations and efforts put in by Vasundhara Raje led BJP government, HPCL (Hindustan Petroleum Corporation Limited) authorities gave into their persistent demands. A fresh MoU stating new clauses for Barmer refinery project was signed between state government and HPCL officials in the presence of Rajasthan CM Vasundhara Raje and Mr. Dharmendra Pradhan (Minister of Petroleum and Natural Gas) today. The formal ceremony took place at Hotel Hilton in Jaipur this afternoon.
The event was attended by key officials and dignitaries including Mr. Sandeep Poundrik (Joint secretary, Refinery), Petroleum secretary Mr. K.D. Tripathi and Mr. Mukesh Kumar Surana (HPCL MD and Chairman). With the signing of Barmer refinery MoU, Rajasthan government looks forward to establishing India’s first BS-VI (Bharat stage) petrochemical complex cum oil refinery in Pachpadra area of Barmer district. It’ll take approximately four years for government to transfer Barmer refinery on ground. Once set up, the refinery will prove beneficial for people in Rajasthan.
Here’s How Barmer Refinery will Reap Benefits for Rajasthan
- Rajasthan currently boasts 24% of total fuel generation capacity in the country—a fact shared by the CM herself. Setting up a refinery with 9 million ton capacity will help people harness this potential.
- Barmer is an under-developed district that needs development in terms of infrastructure, employment and connectivity. Refinery construction will guarantee development and employment in the desert state.
- It’s going to be India’s first eco-friendly refinery built on BS-VI norms, which means less pollution and more productivity! Once completed, the estimated life of this project is 30 years since operations.
- Once the refinery starts its operations, it’ll produce around 2.5 million tons of crude oil/year, even if the oil levels deplete in state. Once the state runs out of its supplies, the crude oil for refinery will be imported at the expense of company (HPCL). The state won’t bear additional costs of export and import. The current cost of crude oil in India (as prescribed by World Bank) is Rs 3,355.75 per barrel. With the amount of oil the refinery produces, Rajasthan will enjoy economic benefits soon.
- The refinery will generate electricity for operation from waste products (pet coke). Previous MoUs stated gas as fuel for driving machines. However, the gas that was meant for refinery will now be used for petro-chemical complex and the waste carbon products will be recycled to produce power. A total win-win situation for all!
- Contrary to the previous MoU signed by the Congress government, the new MoU states that government will sanction a loan of Rs. 16845 crores to HPCL for refinery construction. The government has cleverly saved Rs 40,000 crores from public fund—thanks to the efforts of Raje-led BJP government.
Knowing all this, we now look forward to completion of Barmer refinery in Rajasthan. This project has potential to change the future of thousands of natives in Barmer district.
