CCEA approves ₹73,000 crores plus equity infusion for HPCL Rajasthan Refinery

Ahead of its scheduled inauguration by Prime Minister Narendra Modi on April 21, Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved escalated cost of around ₹73000 crore and additional equity infusion of around ₹9000 crore by HPCL for HPCL Rajasthan Refinery Limited (HRRL).

Meanwhile, CCEA also approved two hydro power projects in Northeast, while Cabinet gave nod to second phase of Jaipur Metro.

Rajasthan Refinery

The original cost of Rajasthan refinery was ₹43129 crore, which has now gone up by around 69 per cent. CCEA also approved raising equity investment by Hindustan Petroleum by ₹8962 crore to ₹19600 crore. The project was conceived in 2008 and was initially approved in 2013. It was supposed to start by December 2022. However, according to officials, pandemic affected the construction work and the cost of various materials increased and all these resulted in cost escalation.

“The scheduled commercial operation date (SCOD) is July 1, 2026,” an official statement said. The HRRL Refinery is a highly complex refinery with more than 26 per cent Petrochemical product slate. Together with production of 1 MMTPA (Million Metric Tonnes Per Annum) of Petrol, 4 MMTPA of Diesel, it would produce 1 MMTPA of Polypropylene, 0.5 MMTPA of LLPDE (Linear Low-Density Polyethylene), 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 import dependence of petrochemical sector,” the statement said. Centre and State together will get around Rs 21000 crore very year.

Jaipur Metro

There was another important development for Rajasthan, as Cabinet approved second phase of Jaipur Metro. The 41 km long North–South corridor from Prahladpura to Todi Mod in the pink city will have 36 stations and to be developed at the cost of over ₹13000 crore. The project will be implemented by Rajasthan Metro Rail Corporation Limited (RMRCL), a 50:50 joint venture of the Government of India and the Government of Rajasthan. At present, Jaipur Metro Phase-1 records an average daily ridership of around 60,000 passengers on the shorter but critical 11.64 km corridor

Hydro Power Projects

Meanwhile, CCEA approved investment of ₹14,105.83 crore for construction of Kalai-II Hydro Electric Project (HEP) on Lohit River in Anjaw district of Arunachal Pradesh. The estimated completion period for the project is 78 months. The project with an installed capacity of 1200 MW is expected to generate 4852.95 MU of energy annually. The project will be implemented through a joint venture company between THDC India Limited and Arunachal Pradesh state government.

The second hydro power project, which got approved involves investment of over ₹26000 crore for construction of Kamala Hydro Electric Project (HEP) in Kamle, Kra Daadi & Kurung Kumey Districts of Arunachal Pradesh. The estimated completion period for the project is 96 months.

Published on April 8, 2026