Hindustan Petroleum Corp Ltd on Thursday signed an agreement with the Rajasthan government to set up a Rs 37,000 crore refinery-cum-petrochemical complex inBarmer, where Cairn is operating India's biggest on-land oilfield.
The proposed refinery will process 9 million tonnes of crude oil every year. "The project is estimated to take about four years for going on stream. The refinery will process the locally available crude as well as other crudes," oil ministry said in a statement.
Chief Minister Ashok Gehlot justified construction of the refinery in the state because people of Rajasthan deserve economic benefits of oil and gas resources.
"The proposed refinery has the potential to become an anchor industry for developing downstream and other sector industries in and around the region," Oil MinisterVeerappa Moily said.