Refining Success: The ₹73,000 Crore Rajasthan Power Play

Ahead of its scheduled inauguration by Narendra Modi on April 21, the Cabinet Committee on Economic Affairs (CCEA) has approved a revised project cost of around ₹73,000 crore for HPCL Rajasthan Refinery Limited, along with an additional equity infusion of nearly ₹9,000 crore by Hindustan Petroleum Corporation Limited.

The Cabinet Committee also cleared two hydropower projects in Northeast India, while the Union Cabinet approved the second phase of the Jaipur Metro.

The refinery project’s original cost was estimated at ₹43,129 crore, which has now risen by nearly 69%. The CCEA approved an increase in HPCL’s equity investment by ₹8,962 crore, taking its total contribution to around ₹19,600 crore.

The project, first conceived in 2008 and approved in 2013, was initially targeted for completion by December 2022. However, delays were caused by disruptions during the COVID-19 pandemic, along with rising material costs that contributed to the overall escalation in expenditure.

News by Rahul Yelligetti.