Cabinet Approves Revision Of HRRL Project Cost And Equity
ECONOMY & POLICY

Cabinet Approves Revision Of HRRL Project Cost And Equity

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, approved the revision of the HPCL Rajasthan Refinery Limited project cost from Rs.431,290 mn to Rs.794,590 mn and endorsed an additional equity investment of Rs.89,620 mn by Hindustan Petroleum Corporation Limited. The decision raises HPCL's total equity commitment to Rs.196,000 mn. The scheduled commercial operation date was set as the first July 2026 and the ministry outlined implementation targets for timely completion.

HRRL at Pachpadra is a nine million metric tonnes per annum (mn t per annum) greenfield refinery cum petrochemical complex with a petrochemical production capacity of two point four mn t per annum. The joint venture is held by Hindustan Petroleum Corporation Limited with 74 per cent equity and the Government of Rajasthan with 26 per cent. The complex is designed for a petrochemical product slate exceeding 26 per cent and will produce one mn t per annum of petrol and four mn t per annum of diesel alongside one mn t per annum of polypropylene.

It will also produce zero point five mn t per annum of linear low density polyethylene and zero point five mn t per annum of high density polyethylene plus zero point four mn t per annum of benzene, toluene and butadiene, supplies that are integral to sectors such as transportation, pharmaceuticals, paints and packaging. The project is expected to advance energy independence and reduce import dependence in the petrochemical sector, contributing to foreign exchange savings. The development is intended to spur industrialisation of a backward area, leverage locally available Mangala crude and position the country as a refining hub.

During construction, the project generated employment for approximately 25,000 workmen employed by various stakeholders, supporting local livelihoods. The ministry indicated that project execution will be monitored to meet quality and timeline targets. Stakeholders were urged to ensure safety, environmental compliance and timely commissioning.

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, approved the revision of the HPCL Rajasthan Refinery Limited project cost from Rs.431,290 mn to Rs.794,590 mn and endorsed an additional equity investment of Rs.89,620 mn by Hindustan Petroleum Corporation Limited. The decision raises HPCL's total equity commitment to Rs.196,000 mn. The scheduled commercial operation date was set as the first July 2026 and the ministry outlined implementation targets for timely completion. HRRL at Pachpadra is a nine million metric tonnes per annum (mn t per annum) greenfield refinery cum petrochemical complex with a petrochemical production capacity of two point four mn t per annum. The joint venture is held by Hindustan Petroleum Corporation Limited with 74 per cent equity and the Government of Rajasthan with 26 per cent. The complex is designed for a petrochemical product slate exceeding 26 per cent and will produce one mn t per annum of petrol and four mn t per annum of diesel alongside one mn t per annum of polypropylene. It will also produce zero point five mn t per annum of linear low density polyethylene and zero point five mn t per annum of high density polyethylene plus zero point four mn t per annum of benzene, toluene and butadiene, supplies that are integral to sectors such as transportation, pharmaceuticals, paints and packaging. The project is expected to advance energy independence and reduce import dependence in the petrochemical sector, contributing to foreign exchange savings. The development is intended to spur industrialisation of a backward area, leverage locally available Mangala crude and position the country as a refining hub. During construction, the project generated employment for approximately 25,000 workmen employed by various stakeholders, supporting local livelihoods. The ministry indicated that project execution will be monitored to meet quality and timeline targets. Stakeholders were urged to ensure safety, environmental compliance and timely commissioning.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code