The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi has approved the revision of HPCL Rajasthan Refinery Ltd (HRRL) project cost from ₹43,129 crore to ₹79,459 crore and additional equity investment of ₹8,962 crore by Hindustan Petroleum Corporation Ltd (HPCL). The total equity investment of HPCL after increment will be ₹19,600 crore.
HRRL Refinery is a highly complex refinery with more than 26 percent petrochemical product slate. Together with production of 1 MMTPA of petrol, 4 MMTPA of diesel, it would produce 1 MMTPA of polypropylene, 0.5 MMTPA of Linear Low Density Polyethylene (LLPDE), 0.5 MMTPA of High Density Polyethylene (HDPE) and about 0.4 MMTPA of benzene, toluene and butadiene.
All these products are critical to India’s energy and industrial ecosystem in sectors such as transportation, pharma, paints, and packaging industries, among others. The project will lead to energy independence and reduce import dependence of petrochemical sector. The Scheduled Commercial Operation Date (SCOD) is July 1, 2026.
HRRL is an important project considering the growing energy needs and the petrochemical requirements of the country and speciality products production, thereby reducing India’s dependence on imports, which will result in saving foreign exchange.
Moreover, this project will also contribute towards industrialisation of a backward area, usage of locally available Mangala crude and help in promoting India as a refining hub.
