Hindustan Petroleum Corporation Limited (HPCL) announced that it expects to fully commission its refinery-cum-petrochemicals complex at Barmer, Rajasthan, by the end of this calendar year.
The oil marketing company (OMC) aims to realize the full benefits of the refinery by March 2027.
Project Details
HPCL owns a 74% stake in the HPCL Rajasthan Refinery (HRRL), with the Rajasthan government holding the remaining 26%.
The complex will have a refining capacity of nine million tons per annum (mtpa), including 2.4 mtpa dedicated to petrochemicals.
The HPCL management provided further details during an analyst call, stating that mechanical completion of the project is expected by September 2025.
After that, commissioning will follow, with full operations anticipated by December 2025. The company expects the refinery to reach its full operational potential by the fiscal year 2027.
Investment and Financial Commitment
So far, HPCL has invested approximately ₹13,000 crore in equity for the refinery, with a total commitment of around ₹18,000 crore.
The entire investment for HRRL stands at ₹71,800 crore, and the refinery’s total debt is about ₹34,000 crore.
In addition, HRRL has entered into a loan agreement for ₹48,625 crore under a consortium arrangement. The total estimated cost of the project is ₹72,937 crore.
The management emphasized that most engineering, procurement, and construction (EPC) contracts are nearly complete, with some already reaching 95-96% completion.
They assured analysts that no significant cost overruns are expected as the project nears commissioning.
Key Infrastructure and Products
The refinery complex will feature several critical infrastructure elements, including pipelines for transporting Rajasthan crude and imported crude, a pipeline for water transport to the refinery, a captive power plant for power and steam needs, as well as storage facilities for crude and products.
Additional facilities such as townships and utilities will also be established.
Upon completion, the refinery will produce high-quality fuels such as BS-VI grade motor spirit (MS or petrol) and high-speed diesel.
It will also manufacture various petrochemical products, including Polypropylene, Butadiene, LLDPE, HDPE, Benzene, and Toluene.
Focus on Visakh Refinery Expansion
Meanwhile, HPCL’s management also highlighted ongoing efforts to ‘de-bottleneck’ the Visakh refinery.
The initiative aims to increase its capacity to approximately 17 mtpa. The Visakh refinery, India’s first east coast refinery, currently has a capacity of 13.7 mtpa.
As reported by thehindubusinessline.com, by enhancing its capacity, HPCL seeks to strengthen its refining capabilities and meet growing demand.
