Cabinet approves cost revision for HPCL Rajasthan refinery project; boosts equity infusion
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a substantial revision in the cost of the HPCL Rajasthan Refinery project, raising it to Rs 79,459 crore from Rs 43,129 crore.
The Cabinet also cleared an additional equity infusion of Rs 8,962 crore by Hindustan Petroleum Corporation Ltd (HPCL), taking the company’s total equity investment in the project to Rs 19,600 crore, the government said on Wednesday.
Located at Pachpadra in Rajasthan’s Balotra district, the 9 million metric tonnes per annum (MMTPA) greenfield refinery-cum-petrochemical complex is scheduled to commence commercial operations on July 1, 2026.
The refinery is designed to produce 1 MMTPA of petrol, 4 MMTPA of diesel, and a substantial volume of petrochemicals, including 1 MMTPA of polypropylene, 0.5 MMTPA each of linear low-density polyethylene (LLDPE) and high-density polyethylene (HDPE), along with around 0.4 MMTPA of benzene, toluene and butadiene.
With over 26 percent of its output slated for petrochemical products, the project aims to reduce India’s dependence on imported petrochemicals, make use of locally available Mangala crude and help establish the country as a refining and petrochemical hub. It is also expected to drive industrial growth in the backward region and has already generated employment for approximately 25,000 workers during construction.
