The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a revision in the cost of the HPCL Rajasthan Refinery Limited (HRRL) project at Pachpadra in Rajasthan, increasing it from ₹43,129 crore to ₹79,459 crore, according to a statement by Ministry of Petroleum and Natural Gas on Wednesday, 8 April.
The approval also includes an additional equity investment of ₹8,962 crore by Hindustan Petroleum Corporation Limited (HPCL), taking its total equity contribution in the project to ₹19,600 crore.
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 HPCL and the Government of Rajasthan, with equity stakes of 74 per cent and 26 per cent respectively.
The refinery, located in Pachpadra in Balotra district in Rajasthan, is a highly complex facility with more than 26 per cent petrochemical product output.
It is expected to produce 1 MMTPA of petrol and 4 MMTPA of diesel, along with 1 MMTPA of polypropylene, 0.5 MMTPA each of linear low density polyethylene (LLDPE) and high density polyethylene (HDPE), and around 0.4 MMTPA of benzene, toluene and butadiene.
These outputs are expected to support multiple sectors including transportation, pharmaceuticals, paints and packaging, while contributing to reducing import dependence in the petrochemical segment and saving foreign exchange.
The project is scheduled to commence commercial operations from 1 July 2026.
According to the ministry, the refinery is an important project considering the growing energy needs and the petrochemical requirements of India and speciality products production, thereby reducing the country’s dependence on imports, which will result in saving foreign exchange.
Further, this project will also contribute towards industrialization of a backward area, usage of locally available Mangala crude and help in promoting India as a refining hub, the ministry said.
During the course of execution of this project, the HRRL has generated employment for approximately 25,000 workmen engaged across various refinery units, according to the ministry.
