Business Today | Rajasthan's Barmer Refinery is 'Jewel of the Desert,' says Union Minister Hardeep Puri

Feb 21,2023

Hardeep S. Puri, the Union Minister of Petroleum and Natural Gas, recently addressed the press at the HPCL Rajasthan Refinery Limited (HRRL) complex, stating that the Barmer Refinery in Rajasthan will be the "Jewel of the Desert" that will bring jobs, opportunities, and joy to the people of Rajasthan. He added that the project is aligned with PM Narendra Modi's vision of Atmanirbhar Bharat and Make in India.

The HRRL refinery complex is expected to process 9 MMTPA of crude and produce over 2.4 million tonnes of petrochemicals, leading to a significant reduction in import bills. The project will act as an anchor industry not only for western Rajasthan but also steer India towards achieving its vision of attaining 450 MMTPA refining capacity by 2030, the Union Minister stated.

The Greenfield Refinery cum Petrochemical Complex at Barmer is a joint venture between the HPCL Rajasthan Refinery Limited (HRRL) of Hindustan Petroleum Corporation Limited (HPCL) and the Government of Rajasthan (GOR), having a stake of 74 and 26 per cent, respectively. Despite the severe setbacks faced during the two years of the COVID-19 pandemic, more than 60 per cent of the project has been completed.

Puri said, "The project will bring self-reliance to India in terms of import substitution of petrochemicals," adding that the import bill is currently around Rs. 95,000 Cr, and the complex is expected to reduce it by Rs. 26,000 Cr post-commission.

The project's socio-economic benefits are expected to generate employment opportunities and foster infrastructure development. About 35,000 workers have been engaged in and around the complex, with approximately 1,00,000 workers indirectly employed. The project will also lead to social-economic benefits for the local people of Rajasthan, the Petroleum Ministry stated in its release.

The establishment of the refinery is expected to improve connectivity in the region, as per the government, with the construction of roads for the villages in the vicinity. The project is also anticipated to boost industrial development in the region, leading to the growth of various industries, including the construction industry, mechanical fabrication shops, machining and assembly units, supply of heavy equipment like cranes, trailers, JCB, transportation and hospitality industry, automotive spares and services, sandblasting and painting shop etc.

HRRL will produce Butadiene, the raw material used to manufacture rubber, which is primarily used in the tyre industry. This is expected to provide impetus to the automotive industry. Currently, India imports around 300 KTPA of synthetic rubber, and with the availability of the key raw material, Butadiene, there is significant scope for a reduction in import dependency on synthetic rubber, the Ministry claimed.