Boost for energy sector: PM Modi to inaugurate Rs 79,450 crore petrochemical refinery — top things to know

Prime Minister Narendra Modi is set to visit Rajasthan on Tuesday, where he will dedicate a major refinery-cum-petrochemical complex to the nation. The plant, located at Pachpadra in Balotra, has been developed by Hindustan Petroleum Corporation Limited in partnership with the Rajasthan government. The refinery is set to reduce reliance on energy imports and boost India’s energy and petrochemical landscape.In the joint venture, 74% stake is held by HPCL and 26% is owned by the state government.Spread across a 9 million metric tonnes per annum (MMTPA) capacity, the greenfield refinery-cum-petrochemical complex has been built at a cost of over Rs 79,450 crore. With a petrochemical capacity of 2.4 MMTPA, it will integrate refining and petrochemical production within a single facility.The refinery has been designed to operate at a Nelson Complexity Index of 17.0, with petrochemical yields exceeding 26%, reflecting a high degree of integration and efficiency. The Cabinet Committee on Economic Affairs, had earlier this month, approved a revision in the project cost, taking it from Rs 43,129 crore to Rs 79,459 crore. As part of this, HPCL will infuse an additional Rs 8,962 crore, taking its total equity investment to Rs 19,600 crore.The plant is scheduled to begin commercial operations from July 1, 2026, according to an ET report. Once operational, it is expected to produce around 1 MMTPA of petrol and 4 MMTPA of diesel. It will also manufacture polypropylene (1 MMTPA), linear low-density polyethylene (0.5 MMTPA), high-density polyethylene (0.5 MMTPA), and around 0.4 MMTPA of benzene, toluene and butadiene. These products are used in transport, pharmaceuticals, paints and packaging, and are expected to reduce dependence on imports. The project is expected to support industrial expansion in the region, utilise locally available Mangala crude, and support the development of a petrochemical and plastic park.