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.

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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.

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