New Delhi: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a revision in the project cost of HPCL Rajasthan Refinery Limited (HRRL) at Pachpadra in Rajasthan, raising it from Rs 43,129 crore to Rs 79,459 crore.
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The Cabinet has also cleared an additional equity investment of Rs 8,962 crore by Hindustan Petroleum Corporation Limited (HPCL), taking its total equity contribution in the project to Rs 19,600 crore.
HRRL is a joint venture between HPCL and the Government of Rajasthan, with equity participation of 74 percent and 26 percent, respectively. The project is being developed as a 9 million metric tonnes per annum (MMTPA) greenfield refinery-cum-petrochemical complex with a petrochemical production capacity of 2.4 MMTPA.
The refinery is designed as a highly complex facility with over 26 percent petrochemical product output. It is expected to produce 1 MMTPA of petrol and 4 MMTPA of diesel, along with key petrochemical products including 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 products are critical for sectors such as transportation, pharmaceuticals, paints, and packaging. The project is expected to strengthen India’s energy security, reduce dependence on petrochemical imports, and contribute to foreign exchange savings.
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The Scheduled Commercial Operation Date (SCOD) for the refinery has been set as July 1, 2026.
The project is also expected to drive industrial development in the region and utilise locally available Mangala crude. During its execution phase, HRRL has generated employment for approximately 25,000 workers engaged in various construction activities.
Once operational, the refinery-cum-petrochemical complex is expected to play a significant role in positioning India as a global refining hub while supporting the country’s growing energy and industrial demand.
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