New Delhi, Sep 20 : The cabinet Friday approved the proposal of Hindustan Petroleum Corporation Limited (HPCL) to set up a 9 MMTPA (million metric tonnes per annum) refinery-cum-petrochemical complex in Rajasthan's Barmer district as a joint venture with the state government, an official statement said.

HPCL will hold 74 percent equity in the proposed HPCL-Rajasthan Refinery Limited (HRRL), with the Rajasthan government holding 26 percent.

The project is estimated to cost Rs. 37,230 crore. HPCL's equity contribution will be Rs. 11,020 crore, with the Rajasthan government providing Rs. 3,872 crore. The remaining Rs. 22,338 crore will be raised through debt.

"There shall be a direct and indirect economic benefit to the economy of Rajasthan, which shall, besides industrialization, result in substantial increase in income, output, employment and tax earnings of the state," the statement said.

HPCL had signed a JV agreement with the Rajasthan government in July for setting up the refinery.(IANS)