The small town of Barmer is all set for a transformation with Rajasthan's first mega 9 million tonnes per annum oil refinery project being set up there for Rs 40,000 crore.
Ahead of the election year, the Ashok Gehlot-led Congress government in the state on Thursday executed a memorandum of understanding (MoU) with the developers of this project led by state-owned HPCL.
The project is expected to take about four years to go on stream after getting approval from the Centre.
Oil minister M Veerappa Moily along with CM Gehlot and others dignitaries were present at the MoU signing ceremony. Moily said the project will accelerate economic growth and development in the region.
For the project, the state government has given in-principle approval for interest-free loan of Rs 3,736 crore each year for 15 years starting from commercial production, besides equity participation subject to minimum stake of 15% and maximum of 26%.