Cabinet Approves Revised Cost for HRRL Project to ₹79,459 Crore

The Cabinet Committee on Economic Affairs has approved a revision in the project cost of HPCL Rajasthan Refinery Limited (HRRL) from ₹43,129 crore to ₹79,459 crore. The Cabinet has also cleared an additional equity infusion of ₹8,962 crore by Hindustan Petroleum Corporation Limited (HPCL), taking its total equity investment in the project to ₹19,600 crore.

Project Scope and Production Capacity

The HRRL refinery is designed as a highly complex facility with over 26% of its output dedicated to petrochemical products. Alongside the production of 1 MMTPA of petrol and 4 MMTPA of diesel, the refinery will manufacture a diverse range of petrochemicals, including:

• 1 MMTPA of polypropylene
• 0.5 MMTPA of linear low-density polyethylene (LLDPE)
• 0.5 MMTPA of high-density polyethylene (HDPE)
• Around 0.4 MMTPA of benzene, toluene, and butadiene

These products are essential for key sectors such as transportation, pharmaceuticals, paints, and packaging, strengthening India’s industrial ecosystem.

Implementation Timeline and Strategic Importance

The project is expected to commence commercial operations on July 1, 2026. Once operational, it will play a critical role in enhancing India’s energy security and reducing dependence on petrochemical imports.

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Economic Impact and Employment Generation

HRRL is a strategically significant project aimed at meeting the country’s rising energy and petrochemical demand. Boosting domestic production of speciality products will help reduce import dependence and conserve foreign exchange.

The project is also expected to drive industrial development in a relatively underdeveloped region of Rajasthan, promote the use of locally sourced Mangala crude, and support India’s ambition to become a global refining hub.

During the construction phase, the project has already generated employment for approximately 25,000 workers engaged by various stakeholders.

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