Cabinet Approves Revised Cost Of HPCL Refinery Project, Also Clears Rs 8,962 Cr Additional Equity Infusion

(MENAFN- KNN India) New Delhi, Apr 8 (KNN) The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved revision in the project cost of HPCL Rajasthan Refinery Limited (HRRL) from Rs 43,129 crore to Rs 79,459 crore.

It also gave its nod for additional equity infusion to the tune of Rs 8,962 crore by oil major HPCL in the joint venture refinery project. This takes the total equity contribution in the joint venture project by HPCL to Rs 19,600 crore.

HRRL, a joint venture between HPCL and the Government of Rajasthan with equity participation of 74 per cent and 26 per cent respectively, is a 9 MMTPA greenfield refinery-cum-petrochemical complex with a petrochemical production capacity of 2.4 MMTPA. It is located in Pachpadra, Balotra district.

Designed as a highly complex refinery with over 26 per cent petrochemical integration, the facility is expected to produce a range of fuels and petrochemical products.

These include 1 MMTPA of petrol, 4 MMTPA of diesel, 1 MMTPA of polypropylene, 0.5 MMTPA each of linear low-density polyethylene (LLDPE) and high-density polyethylene (HDPE), and approximately 0.4 MMTPA of benzene, toluene and butadiene.

The project is expected to support India's energy security by reducing import dependence in the petrochemical sector and strengthening domestic production capabilities. The Scheduled Commercial Operation Date (SCOD) for the refinery has been set for July 1, 2026.

According to the official release, the refinery is also anticipated to contribute to industrial development in the region by utilising locally available Mangala crude and promoting downstream industries such as transportation, pharmaceuticals, paints and packaging.

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

The government stated that the project is strategically significant in meeting the country's growing energy and petrochemical demand, while also supporting efforts to position India as a global refining hub.

(KNN Bureau)

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