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Cabinet Approves ₹79,459 Crore Boost for Rajasthan Refinery Project

The Cabinet Committee on Economic Affairs has approved a major cost revision for the HPCL Rajasthan Refinery, increasing its project cost to ₹79,459 crore. The refinery, a joint venture between HPCL and the Rajasthan government, is a complex facility with a significant petrochemical product slate. It is expected to produce critical fuels and petrochemicals for sectors like transportation and pharmaceuticals, aiming to reduce import dependence. The project is scheduled to begin commercial operations by July 2026 and has already generated substantial employment during construction.

Key Points: Cabinet Approves Revised Cost for HPCL Rajasthan Refinery

  • Cost revised from ₹43,129 cr to ₹79,459 cr
  • HPCL to invest additional ₹8,962 cr equity
  • To produce 9 MMTPA fuel & 2.4 MMTPA petrochemicals
  • Scheduled for commercial ops by July 2026
2 min read

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

Cabinet approves revised cost of ₹79,459 crore for HPCL Rajasthan Refinery, a major petrochemical project set for 2026 completion.

"The project will lead to energy independence and reduce import dependence of the petrochemical sector. - Official Release"

New Delhi, April 8

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved the revision in project cost of the HPCL Rajasthan Refinery Limited project in Pachpadra, Balotra district of Rajasthan, along with additional equity investment by Hindustan Petroleum Corporation Limited.

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.

- ANI

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Reader Comments

P
Priya S
Generating 25,000 jobs is the best part of this news. So many families in Rajasthan will benefit. The focus on petrochemicals for pharma and packaging is smart – we need to make these things at home. 👍
V
Vikram M
Cost revision from 43k to 79k crore is a huge jump. While the project's goals are noble, there must be strict oversight on where this extra 36,000 crore is going. Public money needs accountability. Hope the benefits truly reach the people.
S
Sarah B
As someone working in the manufacturing sector, this is excellent news. A reliable domestic supply of polypropylene and polyethylene will reduce costs for so many Indian industries. This is strategic infrastructure.
R
Rohit P
Good step for Aatmanirbhar Bharat! But alongside these big projects, we also need to invest in renewable energy. Can't just rely on fossil fuels forever. Balance is key.
N
Nisha Z
Hope the local communities in Pachpadra are properly consulted and compensated. Big projects sometimes forget the people on the ground. The employment should first go to Rajasthan's youth.

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