April 09, New Delhi - India's Union Cabinet approved on Wednesday a revision in the project cost of the HPCL Rajasthan Refinery Limited (HRRL) project in Rajasthan, along with additional equity investment by Hindustan Petroleum Corporation Limited.
The Cabinet approved an 84% increase in the HRRL project cost, from ₹43,129 crore to ₹79,459 crore.
Electronics Minister Ashwini Vaishnaw said the move aligns with New Delhi's broader push to position the country as a regional refining and manufacturing hub.
The HRRL Refinery is a highly complex facility with a petrochemical product slate exceeding 26%.
Once operational, the complex will produce fuels, including petrol and diesel, along with petrochemicals such as polypropylene, polyethylene variants, and key industrial chemicals like benzene and butadiene.
These products are critical for sectors such as transportation, pharmaceuticals, construction, packaging, and paints.
Overall, the project will help strengthen the country's energy and industrial ecosystem and reduce import dependence in the petrochemical sector.
Prime Minister Narendra Modi hailed the decision, saying, “India’s efforts towards energy security gain new momentum with the Cabinet decision. The HRRL project will encourage self-reliance, industrial progress, and job creation.”