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Prime Minister Narendra Modi is scheduled to inaugurate the HPCL-Rajasthan refinery at Pachpadra later this month, bringing into operation a 9 MMTPA integrated refinery-cum-petrochemical complex developed at an estimated cost of around INR 80,000 crore. The project, implemented by HPCL Rajasthan Refinery Ltd, is a joint venture between Hindustan Petroleum Corporation Ltd and the Government of Rajasthan. Located in Balotra district, the facility includes petrochemical capacity of 2.4 MMTPA and is designed to process both domestic and imported crude. The refinery has evolved over more than a decade, undergoing cost revisions and policy changes, and is expected to support industrial development, employment generation and downstream sector growth across western Rajasthan.
Prime Minister Narendra Modi will inaugurate the HPCL-Rajasthan refinery at Pachpadra later this month, marking the operational launch of a 9 million metric tonnes per annum (MMTPA) refinery-cum-petrochemical complex developed at an estimated cost of around INR 80,000 crore in Balotra district, Rajasthan, after a development cycle spanning more than a decade. Advertisement
The project has been implemented by HPCL Rajasthan Refinery Ltd, a joint venture between Hindustan Petroleum Corporation Ltd, which holds a 74 per cent stake, and the Government of Rajasthan with 26 per cent equity. The facility integrates refining and petrochemical production, with a total refining capacity of 9 MMTPA and petrochemical output capacity of 2.4 MMTPA.
The refinery has been developed as a greenfield complex, incorporating supporting infrastructure such as crude oil pipelines for both Rajasthan-produced and imported feedstock, a water pipeline, captive power generation, storage systems, residential township and associated utilities. The plant is designed to process locally produced crude, estimated at 1.5 to 2.5 MMTPA, supplemented by imported Arab Mix crude to meet operational requirements.
The project's origins trace back to the period between 2008 and 2013, when the Rajasthan government under former chief minister Ashok Gehlot proposed the refinery following oil discoveries in the state. A memorandum of understanding was signed with HPCL in 2013, with an initial estimated cost of INR 37,230 crore, and the foundation stone was laid by Sonia Gandhi.
Subsequently, the project underwent revisions after a change in the state government later that year. The incoming administration led by Vasundhara Raje reviewed the financial structure, renegotiated terms with HPCL and signed a revised agreement in 2017. The Centre approved the updated project cost at INR 43,129 crore, following which the Prime Minister formally initiated construction activities in 2018 through a work commencement event.
Over time, the project cost escalated to around INR 80,000 crore due to scope expansion, inflation and execution timelines. The refinery is expected to produce BS-VI grade petrol and diesel along with petrochemical outputs such as polypropylene, butadiene, linear low-density polyethylene (LLDPE), high-density polyethylene (HDPE), benzene and toluene.
Officials indicated that butadiene, a key output, is an essential raw material for synthetic rubber used in tyre manufacturing, and its domestic production is expected to reduce import dependence. The refinery is also designed to support downstream industries linked to petrochemicals and manufacturing.
The development is expected to influence industrial activity across western Rajasthan, particularly in sectors such as construction, logistics, fabrication and services. The location in Pachpadra, previously part of Barmer district, positions the complex within a region historically characterised by limited industrial infrastructure but significant crude oil production.
The commissioning comes amid global uncertainties related to energy supply chains, with geopolitical tensions in West Asia influencing petroleum markets. Against this backdrop, the refinery adds to domestic refining capacity and supports integration of upstream crude production with downstream processing within the state.
The project's completion follows extended political and administrative debates over its structuring and execution, reflecting the complexity of large-scale energy infrastructure development involving multiple stakeholders and policy transitions.
Source - PTI
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