Hindustan Petroleum, which had last September announced setting up of a refinery at Barmer in Rajasthan, has expressed hope that it will be able to go ahead with the Rs 37,230-crore project as scheduled and will be meeting the state officials over the next 10 days to iron out the key issues.
The government-run refiner is also confident that it will be able to get the environmental clearance and invite EPC (engineering, procurement and construction) bids shortly as the public hearing on the joint venture project is over.
“We hope to meet the state officials at the earliest and discuss their concerns. We hope to meet them over the next 10 days or so,” HPCL Chairperson and Managing Director Nishi Vasudeva told reporters here over the week-end when asked about reservations expressed by the BJP-led state administration headed by Vasundhara Raje who took charge last December.
The nine-million tonne refinery was the pet project of the previous Congress Government headed by Ashok Gehlot and its foundation stone was laid by Congress President Sonia Gandhi in September.
Gehlot had agreed to provide an interest-free loan of Rs 3,736 crore annually for 15 years from the date of commissioning of the refinery-cum-petrochem complex at Pachpadra in Barmer, in which Rajasthan Government holds 26 per cent and HPCL the rest of the equity.
Asked whether HPCL is ready to offer more stake to state from its present 74 per cent, Vasudeva did not offer a direct answer, saying, “It is too early to discuss such matters as we have not heard from the government officially and so the status of the project stands as it was signed.”
When Raje was in the Opposition, she was critical about the manner in which the deal was inked. The BJP leader had also opposed the terms and conditions of the joint venture, including the high financing cost.
“We have reviewed the project and as per an appraisal report, the project will earn a profit of over Rs 68,000 crore. The former government had committed an interest-free loan of Rs 56,000 crore in 15 years, or Rs 3,736 crore annually, but our stake was kept only at 26 per cent,” Raje said in July without directly seeking a hike in the state equity.
Speaking on the status of the project, HPCL-Rajasthan Refinery Finance Director K V Rao said: “The State has already transferred 4,000 acres needed for the project to us. We are now into the design work and a lot of field surveys are also being conducted at the site.”
Asked when he expects to invite the EPC contracts, Rao said as soon as the green nod is received.