The Cabinet Committee on Economic Affairs (CCEA), chaired by Narendra Modi, has approved the revision of project cost for HPCL Rajasthan Refinery Limited (HRRL) at Pachpadra, Rajasthan, from Rs 43,129 crore to Rs 79,459 crore.

The Cabinet also cleared an additional equity investment of Rs 8,962 crore by Hindustan Petroleum Corporation Limited (HPCL), taking its total equity contribution in the project to Rs 19,600 crore.

The refinery is designed as a highly complex facility with over 26% petrochemical output. It will produce fuels such as petrol and diesel, along with key petrochemical products including polypropylene, LLDPE, HDPE, and petrochemical intermediates like benzene, toluene, and butadiene—critical for sectors such as transportation, pharmaceuticals, paints, and packaging.

The project is expected to enhance India’s energy security, reduce dependence on imports, and support the country’s petrochemical ecosystem. It will also promote industrial development in the region and utilise locally available crude resources.

The refinery is scheduled to commence commercial operations from July 1, 2026. During its construction phase, the project has already generated employment for around 25,000 workers, contributing significantly to local economic development.