The Rajasthan Government and Hindustan Petroleum Corporation Limited (HPCL) have signed a joint venture agreement to set up a refinery-cum-petrochemical complex in Barmer district.

A joint venture company, HPCL-Rajasthan Refinery Limited, will execute the ambitious project.

The agreement was signed here on Thursday in the presence of Chief Minister Ashok Gehlot, Mines and Petroleum Minister Rajendra Pareek, and HPCL Chairman and Managing Director S. Roy Choudhury. State Mines and Petroleum Secretary Sudhansh Pant and HPCL Director (Finance) K. V. Rao signed the pact.

The agreement paves the way for establishment of an oil refinery on a government land at Pachpadra in Barmer district at an estimated cost of Rs.37,229 crore in the next four years. The refinery will source crude from the oil fields in western Rajasthan, and also import crude and manufacture various petroleum and petrochemical products.


Addressing a joint press conference, Mr. Roy Choudhury said the agreement, coming within four months after the signing of a memorandum of understanding on March 14 this year, would turn out to be a milestone in the State’s development.

He said the best technologies would be adopted to the refinery, which would have the capacity of 9 million metric tonnes per annum.

Mr. Gehlot said the equity share of the State Government and HPCL in the joint venture company would be 26 per cent and 74 per cent, respectively.

“The refinery is going to make a significant addition to the investment-friendly atmosphere in the State,” he said, adding that it would also provide immense employment oppor- tunities.

Mr. Gehlot noted that production of petrochemicals such as polyethylene, benzene, toluene and mixed xylene would help the ancillary industries in Barmer, Jodhpur and the nearby areas with raw material and promote the units in various sectors.

New industrial areas would be developed after green zone in the radius of the complex, he said.


During the four-year construction period, an income of Rs.47,000 crore has been projected at the refinery, which would increase to Rs.8.78 lakh crore in the operational period.

New employment opportunities will be available to 1.39 lakh people, while the direct tax earnings would be Rs.1.05 lakh crore and induced tax earnings Rs.75,000 crore.

The development in the area surrounding the refinery would be carried out in a planned manner “for benefiting the generations to come” and no illegal sale of purchase of land would be allowed, said Mr. Gehlot.

He said he would request the HPCL officers to provide training in skills development to the local youths.

The refinery was earlier proposed to be established at Leelala village near Baytu.

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