Commercial production at the oil refinery in Pachpadra of Rajasthan’s Barmer district is said to begin by December 2024, with approval given for payment of ₹2,583 crore towards the State government’s 26% stake in the incremental share capital for the project. This is expected to speed up the refinery work and ensure timely completion.
A target has been set to complete the ₹72,937-crore project’s mechanical work by May 2024, while about 80% of the construction work of the refinery units was completed till last month at an expenditure of ₹30,000 crore. More than 25,000 people would be getting employment at the project site.
The ambitious 9 million tonnes per annum (MTPA) oil refinery project was caught in a political quagmire after its foundation stone was laid by United Progressive Alliance chairperson Sonia Gandhi in 2013 and the BJP government in the State put it on hold to renegotiate terms with Hindustan Petroleum Corporation Limited (HPCL).
Prime Minister Narendra Modi had inaugurated the “commencement of work” at the project site in 2018 and accused the Congress of announcing the project without any clearances or budget allocation. Chief Minister Ashok Gehlot, who criticised Mr. Modi for “re-laying” of the refinery’s foundation stone, brought it on the priority list of the State government and took steps for resource mobilisation for the project.
Mr. Gehlot, who visited Pachpadra over the week end to review the progress of the project, said the work had been adversely affected for a variety of reasons and its cost had escalated from ₹37,229 crore in 2013 to ₹43,129 crore in 2017. Despite the present estimated cost of ₹72,937 crore, the project had gained momentum and was set to become operational, with a huge potential for creating jobs and business opportunities, he said.
Mr. Gehlot said local people would get preference in employment at both the refinery and the petrochemical complex. An industrial corridor to be developed in Barmer district would also ensure consumption of petrochemical products and create more job opportunities, he said.
The upcoming petroleum, chemicals and petrochemicals investment region (PCPIR) in the district has the potential to catalyse investment to the tune of ₹15,000 crore in related industries such as polypropylene, thermoplastic polymer, butadiene, benzene and toluene. Along with the region’s first phase, 422 hectares of land had been identified in Thob village for establishment of a new industrial area.
Mr. Gehlot urged the Centre to construct a six-lane highway between Jodhpur and Barmer through Pachpadra and connect it with the Amritsar-Jamnagar economic corridor as part of the Bharatmala project. This would cater to the increase in traffic, while wayside facilities could be developed to help out travellers and drivers, he said.
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