Jaipur: January 2026 is set to be a significant month for Rajasthan's industrial development, as the HPCL Rajasthan Refinery project in Pachpadra in Balotra is almost completed, and Prime Minister Narendra Modi is expected to inaugurate it in the next couple of weeks.
State government calls refinery a milestone despite nearly doubling of project cost
The state government has hailed it as a milestone in Rajasthan's economic and social development; however, the cost of the project has escalated almost twice. The project's estimated initial cost of the refinery was Rs. 43,129 crore, and the work was scheduled to be completed by October 31, 2022, but the revised cost has now reached Rs. 79,459 crore.
The state cabinet has recently approved the revised cost of this project. Parliamentary Affairs Minister Jogaram Patel said that during the tenure of the current state government, the construction of the refinery-cum-petrochemical complex project in Pachpadra, with an annual capacity of 9 million metric tons, has accelerated and is nearing completion.
“An MoU for the refinery project was signed between the state government and HPCL on April 18, 2017. The estimated initial cost of the refinery was Rs. 43,129 crore, and the work was scheduled to be completed by October 31, 2022. During the previous state government's tenure, the project cost increased to Rs. 72,937 crore on June 2, 2023. HPCL Rajasthan Refinery Ltd. submitted a proposal for a second revision of the refinery's cost to the state government on July 24, 2025. The state government got this proposal evaluated by MECON Limited, a Government of India undertaking. Now, based on the report, HPCL's second revised cost proposal was approved by the Cabinet, and the revised cost of the refinery is now Rs. 79,459 crore,” said the minister.
Joint venture structure highlights Rajasthan government’s strategic stake
HPCL Rajasthan Refinery Limited is a joint venture between Hindustan Petroleum Corporation Limited (HPCL) and the Government of Rajasthan, and the state government's equity in this project is 26 percent.
It is an integrated refinery and petrochemical complex with a capacity of 9 million tons per annum. Parliamentary Affairs Minister Jogaram Patel stated that the launch of this project will be a major achievement for the state's economy and will create new employment opportunities.
The refinery is located in the Pachpadra area of Balotra district. The project was first attempted by the Congress government in 2013, but it stalled due to economic and practical reasons. It was revived in 2017 after a new agreement.
The second phase of this refinery is the petrochemical complex, which is scheduled to be operational by July 1, 2026.
