The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, sanctioned a hike in the HPCL Rajasthan Refinery Limited (HRRL) project cost from Rs 43,129 crore to Rs 79,459 crore. Hindustan Petroleum Corporation Limited (HPCL) will make an additional equity investment of Rs 8,962 crore, bringing HPCL’s total equity investment to Rs 19,600 crore. HRRL, a joint venture of HPCL and the Rajasthan government, is executing a 9 million metric tonnes per annum (MMTPA) greenfield refinery-cum-petrochemical complex with 2.4 MMTPA petrochemical production capacity.
The project, with HPCL holding a 74% equity stake and the Rajasthan government 26%, is a highly intricate refinery with over 26% petrochemical product slate. It is set to produce 1 MMTPA of petrol, 4 MMTPA of diesel, 1 MMTPA of polypropylene, 0.5 MMTPA of LLPDE, 0.5 MMTPA of HDPE, and approximately 0.4 MMTPA of benzene, toluene, and butadiene. These products are crucial for various sectors like transportation, pharma, paints, and packaging industries. The project aims to enhance energy independence, reduce petrochemical sector import reliance, and is scheduled for commercial operation by July 1, 2026.
The HRRL project is significant for meeting the country’s escalating energy and petrochemical demands, including the production of specialty products to lessen import reliance and save foreign exchange. Additionally, it will aid in industrializing an underdeveloped region, utilizing locally available Mangala crude, and positioning India as a refining hub. Throughout the project’s execution, approximately 25,000 workmen have found employment opportunities, contributing to the construction of the Refinery Units.
