Cabinet Approves ₹79,459 Cr Revised Cost for HRRL Refinery Project in Rajasthan

The Cabinet Committee on Economic Affairs (CCEA), chaired by Narendra Modi, has approved a major revision in the project cost of the HPCL Rajasthan Refinery Limited (HRRL) at Pachpadra in Balotra district, Rajasthan.

The total project cost has been revised significantly from ₹43,129 crore to ₹79,459 crore, reflecting the scale and complexity of the refinery.

Key Financial Highlights

• Revised Project Cost: ₹79,459 crore
• Earlier Cost: ₹43,129 crore
• Additional Equity by Hindustan Petroleum Corporation Limited (HPCL): ₹8,962 crore
• Total HPCL Equity Post Revision: ₹19,600 crore
• Joint Venture Partner: Government of Rajasthan

Project Profile & Production Capacity

The HRRL refinery is designed as a highly complex integrated refinery-petrochemical complex with a strong focus on value-added products.

Key Output Mix:

• Petrol: 1 MMTPA
• Diesel: 4 MMTPA
• Polypropylene: 1 MMTPA
• LLDPE: 0.5 MMTPA
• HDPE: 0.5 MMTPA
• Aromatics (Benzene, Toluene, Butadiene): ~0.4 MMTPA

Notably, over 26% of the output will be petrochemical products, making it a strategically important project for India’s downstream industry.

Strategic Importance

• Reduces Import Dependence: Boosts domestic petrochemical production
• Energy Security: Supports India’s long-term energy independence goals
• Industrial Growth: Catalyzes development in backward regions of Rajasthan
• Refining Hub Vision: Strengthens India’s position as a global refining center
• Utilization of Local Resources: Processes Mangala crude from Rajasthan

Employment & Economic Impact

• ~25,000 workers employed during construction phase
• Significant boost to ancillary industries and local economy
• Drives infrastructure and regional development in Balotra and surrounding areas

Timeline

• Scheduled Commercial Operation Date (SCOD): 1 July 2026

An elated Union Minister of Petroleum & Natural Gas, Hardeep Singh Puri, took to X (formerly Twitter) to share the development, said “In a major decision, Cabinet Committee on Economic Affairs, has approved the revision of HPCL Rajasthan Refinery Limited (HRRL) project cost from ₹43,129 Crore to ₹79,459 Crore and additional equity investment of ₹8,962 Crore by Hindustan Petroleum Corporation Limited (HPCL). The total equity investment of HPCL after increment will be ₹19,600 Crore. Known as the ‘Jewel of the Desert’ this massive refinery will produce about 26% of petchem products. It has a Nelson Complexity Index of 17 & is highly energy efficient. This biggest project being undertaken in the oil sector in India, will have worlds’ largest Polypropylene Unit & Polyethylene swing unit to make more than 30 different polymer grades. The project is ushering an era of economic transformation in Rajasthan and has created tremendous opportunities for direct and indirect employment for the youth in the region”.