REC Limited Extends ₹4,785 Crore Loan to HPCL Rajasthan Refinery for Green Field Project Promoting Clean Fuels


REC Limited, Barmer, Rajasthan a prominent power sector financing entity, has provided a loan of ₹4,785 crores to HPCL Rajasthan Refinery Limited (HRRL) as part of a consortium arrangement totaling ₹48,625 crores. The loan will support the establishment of a state-of-the-art green field refinery cum petrochemical complex in Barmer district, Rajasthan. The ambitious project, with a capacity of 9 Million Metric Tonnes per Annum (MMTA), carries a total estimated cost of ₹72,937 crores.


HRRL, a joint venture between Hindustan Petroleum Corporation Limited (HPCL) and the Government of Rajasthan, was formed in 2013, with HPCL holding a 74% equity stake and the remaining 26% owned by the Government of Rajasthan.

The project encompasses multiple components, including the construction of an energy-efficient and environmentally friendly refinery cum petrochemical complex. Additionally, it involves the development of pipelines for transportation of both Rajasthan Crude and imported crude, a dedicated water transportation pipeline, a captive power plant to meet the refinery’s power and steam requirements, storage facilities for crude oil and finished products, as well as the establishment of a township and supporting utilities.

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The primary objective of the project is to produce clean fuels such as BS-VI grade Motor Spirit (Petrol) and High-Speed Diesel (Diesel), along with various petrochemical products like Polypropylene, Butadiene, LLDPE, HDPE, Benzene, and Toluene. This strategic initiative aims to cater to the rising demand for petroleum and petrochemical products, particularly in the Western, Northern, and Central regions of India.

REC Limited, a Maharatna CPSU under the Ministry of Power, has been actively involved in financing and supporting power sector development throughout the country since its inception in 1969. As a non-banking financial company (NBFC), REC Limited offers financial assistance to state electricity boards, government entities, independent power producers, and private sector utilities. Its funding plays a pivotal role in illuminating a significant portion of India’s power infrastructure.

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