The government of Rajasthan has sanctioned financial assistance of Rs 426 crore, as state's equity contribution, for the next fiscal, for Hindustan Petroleum Corporation's (HPCL) Barmer refinery project.

The state government has also assured that the Rs 56,000 crore incentives granted by the previous government for the project will not be withdrawn.

In September 2013, the project, located at Pachpadra in Barmer district, was cleared by the cabinet. HPCL has 74 per cent equity in the plant. The state government agreed to provide interest-free loan of Rs 3,736 crore every year, for 15 years, from the date of commencement of production.

The project, with nine million tpa capacity, entails an investment of Rs 37,320 crore. Currently, the design work has commenced and field surveys are being conducted on the project site.

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