The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, approved a revision of the HPCL Rajasthan Refinery Limited project cost from Rs431,290 million (mn) to Rs794,590 million (mn) and sanctioned an additional equity investment of Rs89,620 million (mn) by Hindustan Petroleum Corporation Limited. The total equity investment by HPCL after the increment will be Rs196,000 million (mn). The decision was taken to ensure completion of the complex petrochemical and refining complex and to align project financing with updated cost estimates and implementation schedules.\n\nHRRL is a highly complex refinery with more than 26 per cent of its product slate devoted to petrochemicals and speciality outputs. The facility is planned to produce one million metric tonnes per annum (MMTPA) of petrol, four MMTPA of diesel, one MMTPA of polypropylene, zero point five MMTPA of linear low density polyethylene, zero point five MMTPA of high density polyethylene and about zero point four MMTPA of benzene, toluene and butadiene. These products are intended to supply sectors including transportation, pharmaceuticals, paints and packaging and to enhance domestic value chains.\n\nThe project is expected to strengthen energy security and to reduce import dependence for critical petrochemical inputs, thereby conserving foreign exchange over time. It is also expected to support industrialisation in a previously backward region, enable utilisation of locally available Mangala crude and to promote India as a refining hub for the region. During the construction phase, implementation of the project has generated employment for approximately 25,000 workmen engaged by various contractors and stakeholders.\n\nHRRL at Pachpadra in Balotra district of Rajasthan is a nine MMTPA greenfield refinery cum petrochemical complex with two point four MMTPA of petrochemical production capacity. The project is being executed by HRRL, a joint venture of Hindustan Petroleum Corporation Limited and the Government of Rajasthan with equity stakes of 74 per cent and 26 per cent respectively. The scheduled commercial operation date for the complex is first July, 2026 and the revised funding is intended to support commissioning and timely ramp up of production.