HPCL Rajasthan Refinery cost set at ₹79,459cr for 2026

Cabinet clears higher outlay for HRRL in Rajasthan

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a revision in the project cost of HPCL Rajasthan Refinery Limited (HRRL). The revised cost is set at ₹79,459 crore, up from the earlier estimate of ₹43,129 crore. The decision also includes approval for additional equity support from Hindustan Petroleum Corporation Limited (HPCL). HRRL is located at Pachpadra in Rajasthan’s Balotra district and is being built as a refinery-cum-petrochemical complex. The approval has been reported in official communication and news coverage dated April 8, 2026.

What exactly the CCEA approved

The CCEA approved two linked changes: a higher overall project cost and additional equity infusion by HPCL. HPCL’s additional equity investment approved for the project is ₹8,962 crore. After this increment, HPCL’s total equity investment in HRRL will rise to ₹19,600 crore. The announcement is specific to equity investment by HPCL and does not detail any change in the Government of Rajasthan’s contribution in the provided text. The updated project cost and equity plan together set the financial framework for completing the project.

Project ownership and location details

HRRL is a joint venture between HPCL and the Government of Rajasthan (GoR). The equity stakes are 74% for HPCL and 26% for GoR. The project site is Pachpadra in Balotra district, Rajasthan. The refinery is described as a greenfield refinery-cum-petrochemical complex, indicating it is being developed as a new facility rather than an expansion of an existing unit. The official note positions HRRL as an important project tied to India’s growing energy and petrochemical needs.

Refinery and petrochemical capacities outlined

HRRL is planned as a 9 Million Metric Tonnes Per Annum (MMTPA) refinery-cum-petrochemical complex. It also includes 2.4 MMTPA petrochemical production capacity. The project is described as a highly complex refinery with more than 26% petrochemical product slate. This matters because the output mix includes both fuels and value-added petrochemicals, which are used across sectors such as transportation, pharma, paints, and packaging, as cited in the provided text.

Output mix: fuels and key petrochemicals

The production profile includes 1 MMTPA of petrol and 4 MMTPA of diesel. On the petrochemical side, the plan includes 1 MMTPA of polypropylene, 0.5 MMTPA of Linear Low Density Polyethylene (LLDPE), and 0.5 MMTPA of High Density Polyethylene (HDPE). In addition, the complex is expected to produce about 0.4 MMTPA of benzene, toluene, and butadiene. These outputs align with the stated aim of lowering import dependence in the petrochemical sector.

Project data at a glance

Product slate summary (as stated)

Scheduled Commercial Operation Date: July 1, 2026

The Scheduled Commercial Operation Date (SCOD) for HRRL has been set as July 1, 2026. This date is significant because it provides a clear commissioning timeline for one of the larger greenfield refinery-cum-petrochemical projects referenced in the text. The approval of revised cost and additional equity is tied to completing the project and supporting the planned start of commercial operations. No intermediate milestones or revised construction schedule details are provided in the supplied material.

Employment generated during construction

During execution, HRRL has generated employment opportunities of approximately 25,000 workmen deployed by various stakeholders engaged in construction of the refinery units. The note frames this as part of the project’s broader economic impact during the build-out phase. The text does not provide a break-up of jobs by skill category, contractor, or time period. Still, the figure offers a concrete indicator of on-ground activity associated with the project.

Why the project is positioned as strategic

The official narrative states that the project will lead to energy independence and reduce import dependence of the petrochemical sector. It is also described as supporting India’s growing energy and industrial needs, with an emphasis on speciality product production and saving foreign exchange by lowering imports. The emphasis on a petrochemical-heavy slate is consistent with that goal, as several listed products are widely used industrial feedstocks. The text does not quantify potential import substitution or foreign exchange savings, so the impact remains directional rather than numerical.

Conclusion

The CCEA’s decision revises HRRL’s project cost to ₹79,459 crore and clears an additional ₹8,962 crore equity infusion by HPCL, taking HPCL’s total equity investment to ₹19,600 crore. HRRL remains a 9 MMTPA greenfield refinery-cum-petrochemical complex with 2.4 MMTPA petrochemical capacity, being developed through a 74:26 JV between HPCL and the Government of Rajasthan. The project’s output plan includes petrol, diesel, and a set of major polymers and aromatics. The next key milestone on record is the SCOD of July 1, 2026.