Cabinet approves Rs 79,459 crore revised cost for HPCL Rajasthan Refinery project in Rajasthan

New Delhi [India], April 8 : The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved the revision in project cost of the HPCL Rajasthan Refinery Limited (HRRL) project in Pachpadra, Balotra district of Rajasthan, along with additional equity investment by Hindustan Petroleum Corporation Limited (HPCL).

According to an official release by the CCEA, the Cabinet approved the revision of the HRRL project cost from Rs 43,129 crore to Rs 79,459 crore, along with additional equity investment of Rs 8,962 crore by Hindustan Petroleum Corporation Limited (HPCL).

The total equity investment by HPCL after the increase will stand at Rs 19,600 crore.

The refinery project is a joint venture between Hindustan Petroleum Corporation Limited and the Government of Rajasthan.

According to the release, "HRRL Refinery is a highly complex refinery with more than 26 per cent petrochemical product slate."

The refinery will produce 1 million metric tonnes per annum (MMTPA) of petrol and 4 MMTPA of diesel, along with petrochemical products including 1 MMTPA of polypropylene, 0.5 MMTPA of Linear Low Density Polyethylene (LLDPE), 0.5 MMTPA of High Density Polyethylene (HDPE), and around 0.4 MMTPA of benzene, toluene and butadiene.

The release further noted that these products are critical for sectors such as transportation, pharmaceuticals, paints and packaging.

It added that the project will help strengthen the country's energy and industrial ecosystem and reduce import dependence in the petrochemical sector.

"The project will lead to energy independence and reduce import dependence of the petrochemical sector," the release said.

The Scheduled Commercial Operation Date (SCOD) for the refinery has been set as July 1, 2026.

According to the government, the project is also expected to contribute to industrial development in the region and generate employment.

"During the course of execution of this project, HRRL has generated employment opportunities of approximately 25,000 workmen deployed by various stakeholders engaged in the construction of the refinery units," the release stated.

The HRRL project is a 9 Million Metric Tonnes Per Annum (MMTPA) greenfield refinery-cum-petrochemical complex with a petrochemical production capacity of 2.4 MMTPA.

It is being implemented by HRRL, a joint venture between Hindustan Petroleum Corporation Limited and the Government of Rajasthan, with equity stakes of 74 per cent and 26 per cent, respectively.

Additionally, Union Minister Ashwini Vaishnaw, while briefing the media on Cabinet decisions, said that five major decisions were approved by the Cabinet chaired by Prime Minister Narendra Modi, with a total of Rs 1,74,207 crore worth of investments and subsidies announced across sectors, including agriculture and power.

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