Cabinet Approves INR 79,459 Cr Investment in HPCL Rajasthan Refinery

The Cabinet approved HPCL Rajasthan refinery investment. This move gives a strong push to India’s energy and petrochemical sector.

The Cabinet Committee on Economic Affairs, chaired by Narendra Modi, has cleared a revised project cost of INR 79,459 crore, up from INR 43,129 crore.

The decision also includes an additional equity infusion of INR 8,962 crore by Hindustan Petroleum Corporation Limited. This CCEA HRRL refinery cost hike pushes HPCL’s total equity investment in the project to INR 19,600 crore.

The HPCL Rajasthan Refinery Ltd (HRRL) project is being developed as a highly complex refinery with over 26 percent petrochemical output. It will produce 1 mtpa of petrol and 4 mtpa of diesel, along with key petrochemical products like polypropylene, LLDPE, HDPE, and aromatics such as benzene, toluene, and butadiene.

Also Read: Redefining CFO Priorities: Finance Transformation Trends in Logistics

“All these products are critical to our energy and industrial ecosystem in sectors like transportation, pharma, paints, packaging industries, etc. The project will lead to energy independence and reduce import dependence of the petrochemical sector. The scheduled commercial operation date is July 1,” CCEA said in a statement.

Located in Balotra, the refinery is a 9 mtpa greenfield refinery-cum-petrochemical complex with a petrochemical capacity of 2.4 mtpa. The project is a joint venture between HPCL and the Rajasthan government, holding 74 percent and 26 percent stakes respectively.

“This project will contribute towards industrialization of a backward area, usage of locally available Mangala crude and help in promoting India as a refining hub. During the course of execution of this project, HRRL has generated employment opportunities of 25,000 workmen deployed by stakeholders engaged in the construction of the refinery units,” CCEA said.

The project is expected to cut import dependence and support India’s growing energy and petrochemical demand.