"We will see that the project materialises," Gangwar asserted. HPCL could also take up the project independently if no partner is found by HPCL, he added. The foundation stone for the nine million tonnes grassroot refinery project was laid by Prime Minister Atal Bihar Vajpayee during the second week of November last year.

Exxon had pulled out from the joint venture project stating that the refining margins for the project would be low due to the subdued international oil prices.

Other refineries coming up in the northern states of the country could also affect margins, the multinational had said. Exxon had been asked by thePunjab government to convey its decision regarding equity participation during the first week of December last year.

The US multinational had the option of picking up 26 per cent stake in the project, which is presently being held by the Punjab State Industrial Development Corporation (PSIDC) with the majority 74 per cent being held by HPCL.

The refinery project, which also envisages a 750 mw power project, had received the Cabinet Committee on Economic Affairs (CCEA) clearance during the second week of November 1998.

The cost of the power project is estimated to be around Rs 3,000 crore. The proposed refinery project would receive the crude through a pipeline from Mundra Port in Gujarat, petroleum ministry sources said.

Financial closure for the project is likely to be achieved within three to four months after HPCL takes a decision regarding selection of joint venture partner or decides to go for it independently, they added.

The refinery project is scheduled to be commissioned in the next fiveyear period, according to the CCEA clearance. Apart from setting up this refinery project, PSDIC is also proposing to set up a Rs 6,000 crore petrochemicals complex near Bhatinda, sources said.