₹79,459 Crore HRRL Refinery Project Gets Cabinet Nod for Cost Revision, Equity Boost
The Scheduled Commercial Operation Date for the refinery is set for July 1, 2026, marking a significant milestone in India’s refining capacity expansion.
HPCL to invest additional ₹8,962 crore; project to enhance petrochemical output and reduce imports
New Delhi: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved the revised project cost of the HPCL Rajasthan Refinery Limited (HRRL) project at Pachpadra in Rajasthan, increasing it from ₹43,129 crore to ₹79,459 crore.
The Cabinet has also approved an additional equity investment of ₹8,962 crore by Hindustan Petroleum Corporation Limited, taking its total equity contribution in the joint venture to ₹19,600 crore.
Integrated Refinery to Strengthen Energy and Petrochemical Capacity
The HRRL project is a 9 MMTPA greenfield refinery-cum-petrochemical complex with a petrochemical production capacity of 2.4 MMTPA. It is being implemented as a joint venture between HPCL and the Government of Rajasthan, with equity stakes of 74 per cent and 26 per cent respectively.
The refinery is designed to produce a diversified output, including petrol and diesel along with petrochemical products such as polypropylene, linear low-density polyethylene (LLDPE), high-density polyethylene (HDPE), and key industrial chemicals like benzene, toluene and butadiene.
These products are critical inputs for sectors such as transportation, pharmaceuticals, paints and packaging, strengthening India’s industrial ecosystem.
Reducing Import Dependence, Boosting Energy Security
The project is expected to significantly reduce India’s dependence on imports in the petrochemical sector, contributing to foreign exchange savings and enhancing energy security.
Officials said the refinery’s high petrochemical intensity—over 26 per cent of the product slate—will position it as a key asset in India’s push towards becoming a global refining and petrochemical hub.
The facility will also utilise locally available Mangala crude, supporting domestic resource optimisation.
Industrial Growth and Employment Generation
Located in the Balotra district of Rajasthan, the project is expected to drive industrialisation in a relatively underdeveloped region.
During its construction phase, the project has already generated employment for around 25,000 workers, with further economic benefits expected through ancillary industries and infrastructure development.
Commissioning Timeline
The Scheduled Commercial Operation Date for the refinery is set for July 1, 2026, marking a significant milestone in India’s refining capacity expansion.
The approval of the revised investment underscores the government’s commitment to strengthening India’s energy infrastructure, boosting domestic manufacturing, and reducing reliance on imports in high-value petrochemical segments.
