By MUKESH JAGOTA
NEW DELHI -- India's cabinet on Friday approved
state-run Hindustan Petroleum Corp.'s (HPCL) 372 billion rupee
($6 billion) refinery and petrochemicals complex in the
northwestern state of Rajasthan, Information and Broadcasting
Minister Manish Tewari said.
The 9 million tpy refinery will mostly draw upon crude
supplies from Cairn India Ltd.'s oilfields in the
Hindustan Petroleum will own 74% of the project, while the Rajasthan state
government will own the rest. The refinery, located in Rajasthan's
Bamer town, is expected to go on stream in four years.
The project's clearance comes ahead of
state elections in Rajasthan, due to take place toward the end
of this year.
India imports three-fourths of its
energy requirement but has one of the world's largest refining capacities. The country has
also emerged as one the largest exporters of refined products
in the world.
Dow Jones Newswires