Jaipur, April 8 – Prime Minister Narendra Modi will inaugurate the HPCL-Rajasthan refinery at Pachpadra on April 21, a project that is expected to redefine the economy of western Rajasthan and become one of the largest integrated refinery-cum-petrochemical complexes in the country.
The inauguration marks the culmination of a project that has spanned over a decade and multiple governments.
The 9 MMTPA project, which now costs around Rs 80,000 crore, is expected to redefine the economy of western Rajasthan and emerge as one of the country's largest integrated refinery-cum-petrochemical complexes.
The inauguration comes at a time when geopolitical tensions in West Asia have raised concerns about global petroleum and gas supplies.
Chief Minister Bhajanlal Sharma said the PM will visit the state to inaugurate the refinery in Pachpadra, which was previously part of Barmer but is now part of the newly created Balotra district.
"The refinery will play a key role in boosting the economy of the Marwar region and the entire state, and will create new employment opportunities for the youth. This project will be vital for economic growth in Rajasthan," Chief Minister Sharma posted on X late Tuesday night.
The Greenfield Refinery-cum-Petrochemical Complex has been set up by HPCL Rajasthan Refinery Ltd (HRRL), a joint venture between Hindustan Petroleum Corporation Ltd and the Government of Rajasthan, with a 74 per cent and 26 per cent stake, respectively.
The complex has a capacity of 9 million metric tonnes per annum (MMTPA), including 2.4 MMTPA of petrochemical products.
The refinery project was initiated during the Ashok Gehlot-led Congress government in Rajasthan in 2008-13.
After major oil discoveries in the desert region, the then Gehlot government strongly pushed for a refinery in Rajasthan, arguing that the state, which contributes nearly 20 per cent of the country's crude oil production, deserved its own refinery-cum-petrochemical complex.
The Rajasthan government and HPCL signed an MoU in March 2013 for the complex.
The project was conceptualized and approved under the Congress government and the UPA regime at the Centre, with an estimated investment of Rs 37,230 crore. Sonia Gandhi, then Chairperson of the UPA, laid the foundation stone of the refinery at Pachpadra on September 22, 2013.
However, after the BJP government led by Vasundhara Raje came to power in Rajasthan in December 2013, the project slowed down. The new government reviewed the agreement and deemed the original deal financially unfavourable for the state.
They renegotiated the terms with HPCL and signed a revised MoU in 2017, claiming that it had substantially reduced the state's financial burden.
The Centre then approved the revised refinery project at a cost of Rs 43,129 crore.
Prime Minister Narendra Modi formally launched the commencement of work at Pachpadra in January 2018.
Since Sonia Gandhi had already laid the foundation stone in 2013, the event was officially described as a "work commencement ceremony" rather than a fresh foundation-laying programme.
Former Chief Minister Ashok Gehlot alleged that the BJP government stalled the project for several years, while the BJP has argued that renegotiation was necessary to make the project financially viable.
"I made several efforts as chief minister with then prime minister and all stakeholders to get the refinery project approved. I raised the demand at every platform. Initially, HPCL was not agreeable, but through continuous efforts I convinced the prime minister and the UPA chairperson for the refinery project," Gehlot told