India’s CCEA has approved a revised project cost of ₹794.59 billion for the HPCL Rajasthan Refinery, up from ₹431.29 billion. HPCL will inject an additional ₹89.62 billion equity, raising its total stake-based investment to ₹196 billion.
According to an official release, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a substantial cost revision for the HPCL Rajasthan Refinery Limited (HRRL) project in Pachpadra, Balotra district. The 9 MMTPA greenfield refinery-cum-petrochemical complex, a joint venture between Hindustan Petroleum Corporation Limited (HPCL) with 74% equity and the Government of Rajasthan with 26%, will now cost ₹794.59 billion.
HPCL will contribute an additional ₹89.62 billion in equity. The refinery is designed with over 26% petrochemical product slate, producing 1 MMTPA of petrol, 4 MMTPA of diesel, and petrochemicals including polypropylene, LLDPE, HDPE, benzene, toluene, and butadiene. HRRL is the implementing special purpose vehicle.
This development matters because the project directly impacts India’s import dependence for petrochemicals, critical for pharmaceuticals, packaging, and transportation sectors. Scheduled commercial operation date is July 1, 2026.
For investors and energy sector analysts, the cost overrun signals execution risks but also underscores strategic prioritization of refining-petrochemical integration. The project has generated approximately 25,000 construction jobs and is expected to drive industrial growth in Rajasthan.
About GlobeNewsInfo
GlobeNewsInfo.com is a business news platform providing latest updates on global business developments, projects, and contract opportunities across diverse sectors and regions. The platform is designed to serve as a trusted source of information for companies, investors, and professionals worldwide.