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India Raises HPCL Rajasthan Refinery Project Cost to $8.6B

NEW DELHI, April 8 (Reuters) - India's cabinet approved an 84% increase in the project ​costs of HPCL Rajasthan Refinery Ltd (HRRL) to ‌794.59 billion rupees ($8.60 billion), Information Minister Ashwini Vaishnaw said on Wednesday.

Here are some more details:

  • HPCL Rajasthan Refinery Ltd ​is a joint venture with HPCL owning ​a 74% stake and the rest owned ⁠by the state government of Rajasthan.

  • New Delhi also ​approved an additional equity investment of 89.62 billion ​rupees by HPCL. The state-run refiner's total equity investment after the increase will be 196 billion rupees, the ​government said in a statement.

  • The refinery will start ​commercial operations in July this year and during operations, will ‌have ⁠10,000 direct jobs, Vaishnaw said. It will use both local crude available in Rajasthan and imported crude, he added.

  • HRRL will produce petrol, diesel ​and other chemicals ​such as ⁠polypropylene, high and linear low-density polyethylene, benzene, toluene and butadiene.

  • These products ​are critical in sectors such as transportation, ​pharma ⁠and paints; the production from the project will reduce India's reliance on imports and help save ⁠foreign ​exchange, the statement said.

($1 = 92.3530 ​Indian rupees)

Reporting by CK Nayak and Hritam Mukherjee, writing by Sakshi ​Dayal; Editing by YP Rajesh and Elaine Hardcastle

Source: Reuters


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