With The Change in Government in Rajasthan and with upcoming BJP Govt the officials of HPCL were in nervous situation as they were in fear that the project started by Sonia Gandhi of congress would be held back. But in the recent meeting between CM Vasundhara Raje and the officials of HPCL she assured the company that the Rs 56,000-crore incentives granted by the previous government would not be withdrawn.
Rajasthan CM had also appointed two new directors to the company board and sanctioned Rs 426 crore as state’s equity contribution for the next fiscal.
The 9-million tonne refinery was the pet project of the previous regime. Last September, the Cabinet cleared the setting up of the Rs 37,229 crore refinery cum-petrochemical complex in Pachpadra in Barmer district of Rajasthan where HPCL has a 74% equity.The Rajasthan government agreed to provide interest-free loan of Rs 3,736 crore every year for 15 years from the date of commencement of production for the refinery project.
“Earlier, the chief minister had expressed reservations about the state government not having enough equity in the project as she thought that 26% was not enough given that the state was giving a lot to the project in terms of land, water and financial sops. We in turn assured her that the state government can hike this equity and we can discuss to what level,” a senior HPCL executive told ET.