New Delhi, April 8 (IANS) The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved the revision of the HPCL Rajasthan Refinery Limited (HRRL) project cost from Rs 43,129 crore to Rs 79,459 crore and additional equity investment of Rs 8,962 crore by the Hindustan Petroleum Corporation Limited (HPCL).

The total equity investment of HPCL after the increment will be Rs 19,600 crore, according to an official statement.

HRRL is a 9 million metric tonnes per annum (MMTPA) greenfield refinery-cum-petrochemical complex with 2.4 MMTPA petrochemical production capacity.

The project is being implemented by HRRL, a joint venture (JV) of HPCL and the Rajasthan government with equity stakes of 74 per cent and 26 per cent, respectively.

According to the CCEA, HRRL Refinery is a highly complex refinery with more than 26 per cent petrochemical product slate.

Together with the production of 1 MMTPA of petrol and 4 MMTPA of diesel, it would produce 1 MMTPA of polypropylene, 0.5 MMTPA of LLPDE (linear low-density polyethene), 0.5 MMTPA of HDPE (high-density polyethylene) and about 0.4 MMTPA of benzene, toluene, and butadiene.

“All these products are critical to our energy and industrial ecosystem in sectors like transportation, pharma, paints, packaging industries, etc. The project will lead to energy independence and reduce the import dependence of the petrochemical sector. The Scheduled Commercial Operation Date (SCOD) is July 1, 2026,” a statement said.

According to the government, HRRL is an important project considering the growing energy needs and the petrochemical requirements of the country and speciality products production, thereby reducing the country’s dependence on imports, which will result in saving foreign exchange.

Moreover, this project will also contribute towards the industrialisation of a backward area, the usage of locally available Mangala crude, and help in promoting India as a refining hub.

During the course of execution of this project, HRRL has generated employment opportunities of approximately 25,000 workmen deployed by various stakeholders engaged in the construction of the Refinery Units.

–IANS

na/vd