Published On: Fri, Jan 19th, 2018

Construction of Oil Refinery in Rajasthan to Meet the Rising Oil Needs

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Oil refinery in Rajasthan

Due to rise in the demand for oil globally and in the parallel situation a dip in prices has pushed major economies to utilize their oil resources efficiently and simultaneously explore new venues for oil extraction. In the similar bid, Narendra Modi Indian prime minister has given green signal to the construction of oil refinery in Rajasthan. The project will cost $6.8 billion but it is hoped that it will sufficiently meet the rising demand for Oil in the country.

It has been estimated that demand for oil variants, petrol, diesel, and kerosene will increase multifold, mainly due to the increase in the percentage of the middle-class segment. The refinery has the capacity of 180,000 barrel per day and will be built by Hindustan Petroleum refinery (HPCL) with the collaboration of government. HPCL is third among the biggest refiners in India. Initially, the project was initiated by Sonia Gandhi back in September 2013 but it couldn’t be executed due to non-conformity of government.

According to Dharmendra Pradhan, the said project will be completed in 2022-23. And the government has also offered interest-free loan of $2.63 billion to HPCL, will be repaid over the time period of 15 years.

The location has some default cost attached to it which HPCL has to bear like transportation cost as well as water scarcity.

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