New Delhi, April 8 – The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved on Wednesday the revision of the cost of the HPCL Rajasthan Refinery Limited (HRRL) project from ₹43,129 crore to ₹79,459 crore, and an additional equity investment of ₹8,962 crore by the Hindustan Petroleum Corporation Limited (HPCL).
According to an official statement, HPCL's total equity investment after the revision will be ₹19,600 crore.
HRRL is a 9 million metric tonnes per annum (MMTPA) greenfield refinery-cum-petrochemical complex with a petrochemical production capacity of 2.4 MMTPA.
The project is being implemented by HRRL, a joint venture (JV) of HPCL and the Rajasthan government, with equity stakes of 74% and 26%, respectively.
According to the CCEA, the HRRL Refinery is a highly complex refinery with more than 26% of its product slate being petrochemical products.
In addition to producing 1 MMTPA of petrol and 4 MMTPA of diesel, it will also produce 1 MMTPA of polypropylene, 0.5 MMTPA of LLPDE (linear low-density polyethylene), 0.5 MMTPA of HDPE (high-density polyethylene), and approximately 0.4 MMTPA of benzene, toluene, and butadiene.
"These products are crucial to our energy and industrial ecosystem in sectors like transportation, pharmaceuticals, paints, and packaging industries, among others. The project will lead to energy independence and reduce the petrochemical sector's dependence on imports. The Scheduled Commercial Operation Date (SCOD) is July 1, 2026," the statement said.
According to the government, HRRL is an important project considering the growing energy needs and the petrochemical requirements of the country, as well as the production of specialty products, thereby reducing the country's dependence on imports, which will result in savings in foreign exchange.
Moreover, this project will also contribute to the industrialization of a backward area, the utilization of locally available Mangala crude, and help promote India as a refining hub.
During the execution of this project, HRRL has created employment opportunities for approximately 25,000 workers deployed by various stakeholders involved in the construction of the Refinery Units.