Home BusinessHPCL Rajasthan Refinery Gets ₹36,330 Cr Cost Boost, Equity Nod

HPCL Rajasthan Refinery Gets ₹36,330 Cr Cost Boost, Equity Nod

by News Analysis India
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New Delhi’s policy corridors echoed with a landmark decision today as the Union Cabinet approved a hefty cost overrun for the ambitious HPCL Rajasthan Refinery. The total outlay now stands at ₹79,459 crore, up from the initial ₹43,129 crore, alongside HPCL’s extra ₹8,962 crore equity infusion, elevating its contribution to ₹19,600 crore.

Nestled in Rajasthan’s arid Barmer district at Pachpadra, this 9 MMTPA refinery integrates petrochemical production at 2.4 MMTPA scale. Expect 1 MMTPA petrol, 4 MMTPA diesel, plus petrochemicals like polypropylene (1 MMTPA), LLDPE and HDPE (0.5 MMTPA each), and aromatics including benzene, toluene, and butadiene (0.4 MMTPA).

The facility addresses surging domestic energy demands and curtails petrochemical imports, saving precious forex reserves. It leverages Rajasthan’s Mangla crude, spurs local industry in underdeveloped areas, and has created 25,000 jobs during buildup. With commercial launch eyed for July 2026, HRRL— a 74:26 JV of HPCL and Rajasthan govt—heralds a new era of refining prowess for India.

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