Cabinet Approves ₹79,459 Crore HPCL Rajasthan Refinery Project Before PM Modi's Visit

In the latest turn of events, Hindustan Petroleum Corporation Limited (HPCL) Rajasthan Refinery received government approval for its refinery project. After the announcement, HPCL shares rose by 10% on 08 April 2026, reaching ₹364.95. According to reports, the company plans to invest ₹79,459 crore to develop an integrated refining and petrochemical complex at Pachpadra in the Barmer district.

What Are The Key Details Of The Project?

The joint venture of HPCL and the Government of Rajasthan, HRRL, is executing the project. The refinery will have a refining capacity of 9 million metric tonnes per annum (MMTPA), including 2.4 MMTPA of petrochemical output, and is configured to process 7.5 MMTPA of imported crude along with 1.5 MMTPA of Rajasthan-produced crude.

According to the Minister for Petroleum and Natural Gas, Hardeep Singh Puri, the refinery has the capacity to produce around 26% petrochemical products and boasts a high Nelson Complexity Index of 17. He further mentioned that the refinery has a polypropylene unit and a polyethylene swing unit that are capable of producing over 30 different polymer grades.

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What Will Be The Impact Of This Project?

The refinery is expected to strengthen India’s petrochemical sector and boost the downstream capabilities of the country. Apart from this, the refinery is expected to boost the local economy of the Marwar region, generate massive employment opportunities and maximise industrial growth.

Also, it is expected that PM Narendra Modi will inaugurate the refinery on 21 April during his visit to Rajasthan.

Sources:

CNBC TV18

Fortune India