Massive Increase in Rajasthan Refinery Cost

The Union Cabinet has approved a significant increase in the estimated cost of the Rajasthan oil refinery project being developed by HPCL Rajasthan Refinery Limited. Initially estimated at ₹43,129 crore, the project cost has now been revised to ₹79,459 crore with approval from the Cabinet Committee on Economic Affairs. Hindustan Petroleum Corporation Limited will contribute an additional ₹8,962 crore as equity support, taking its total investment to ₹19,600 crore. This move aligns with the government’s focus on strengthening domestic refining and petrochemical capacities. The refinery, located at Pachpadra in Rajasthan, is expected to be one of the largest integrated refinery-petrochemical complexes in the country.

The project, which has already generated employment for around 25,000 people, will be inaugurated on April 21 by Narendra Modi. With an annual refining capacity of 9 million metric tonnes and petrochemical production capacity of 2.4 million metric tonnes, it marks a major step in India’s energy sector growth. Meanwhile, the Cabinet has also approved two hydropower projects in Arunachal Pradesh with an investment of ₹40,150 crore, aimed at boosting renewable energy infrastructure and regional development.