New Delhi, April 8: The Economic Affairs Committee of the Cabinet, chaired by Prime Minister Narendra Modi, has approved an increase in the cost of the HPCL Rajasthan Refinery Limited (HRRL) project from ₹43,129 crores to ₹79,459 crores. Additionally, Hindustan Petroleum Corporation Limited (HPCL) will make an extra equity investment of ₹8,962 crores.
Following this increase, HPCL’s total equity investment will reach ₹19,600 crores.
Located in Pachpadra, Barmer district of Rajasthan, HRRL is a greenfield refinery and petrochemical complex with a capacity of 9 million metric tons per annum (MMTPA) and a petrochemical production capacity of 2.4 million metric tons per annum.
According to a statement from the Cabinet, the HRRL refinery is a significant facility that can produce 1 million metric tons of petrol and 4 million metric tons of diesel annually. It also has the capability to produce 1 million metric tons of polypropylene, 0.5 million metric tons of linear low-density polyethylene (LLDPE), 0.5 million metric tons of high-density polyethylene (HDPE), and approximately 0.4 million metric tons of benzene, toluene, and butadiene.
These products are vital for various sectors, including transportation, pharmaceuticals, paints, and packaging, contributing to the energy and industrial ecosystem. This project aims to enhance energy self-sufficiency and reduce the dependence on imports in the petrochemical sector. The scheduled commercial operation date (SCOD) is set for July 1, 2026.
The Cabinet emphasized that HRRL is a crucial project considering the growing energy demands, the need for petrochemicals, and the manufacturing of specialized products in the country. It will help decrease dependence on imports and save foreign currency. Furthermore, the project will contribute to the industrialization of backward areas and promote the use of locally available Mangala crude oil, positioning India as a refining hub. During the implementation of this project, HRRL is expected to create job opportunities for around 25,000 workers involved in the construction of refinery units.
The project is being implemented by HRRL, a joint venture where HPCL holds a 76% stake and the Rajasthan government holds 26%.
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