Jaipur, Apr 8: Prime Minister Narendra Modi will inaugurate the HPCL-Rajasthan refinery at Pachpadra on April 21 — a project that is expected to redefine the economy of western Rajasthan and emerge one of the country’s largest integrated refinery-cum-petrochemical complexes.
The inauguration of the refinery marks the culmination of a project whose journey has stretched over a decade and multiple governments.
The 9 MMTPA project, whose cost has now more than doubled to around Rs 80,000 crore, is expected to redefine the economy of western Rajasthan and emerge as one of the country’s largest integrated refinery-cum-petrochemical complexes.
The inauguration comes at a time when geopolitical tensions in West Asia have raised concerns over global petroleum and gas supplies.
Chief Minister Bhajanlal Sharma said the PM will visit the state for the inauguration of the refinery in Pachpadra — previously part of Barmer but now under the newly created Balotra district.
“The refinery will play a key role in boosting the economy of the Marwar region as well as the entire state and will open new employment opportunities for the youth. The project would prove to be a lifeline for economic growth in Rajasthan,” CM Sharma posted on X late on Tuesday night.
The Greenfield Refinery-cum-Petrochemical Complex at has been set up by HPCL Rajasthan Refinery Ltd (HRRL), a joint venture between Hindustan Petroleum Corporation Ltd and the Government of Rajasthan, with a stake of 74 per cent and 26 per cent, respectively.
The complex has a capacity of 9 million metric tonnes per annum (MMTPA), including 2.4 MMTPA of petrochemical products.
The refinery project was initiated during the Ashok Gehlot-led Congress government in Rajasthan in 2008-13.
After major oil discoveries in the desert region, then Gehlot government strongly pushed for a refinery in Rajasthan, arguing that the state, which contributed nearly 20 per cent of the country’s crude oil production, deserved a refinery-cum-petrochemical complex of its own.
The Rajasthan government and HPCL signed an MoU in March 2013 for the complex.
The project was conceptualised and approved under the Congress government and the UPA regime at the Centre, with an estimated investment of Rs 37,230 crore. Then UPA Chairperson Sonia Gandhi laid the foundation stone of the refinery at Pachpadra on September 22, 2013.
However, after the BJP government led by Vasundhara Raje came to power in Rajasthan in December 2013, the project slowed down. The new government reviewed the agreement and termed the original deal financially unfavourable for the state.
It renegotiated the terms with HPCL and signed a revised MoU in 2017, claiming it had substantially reduced the state’s financial burden.
The Centre then approved the revised refinery project at a cost of Rs 43,129 crore.
Prime Minister Narendra Modi formally launched the commencement of work at Pachpadra in January 2018.
Since Sonia Gandhi had already laid the foundation stone in 2013, the event was officially described as a “work commencement ceremony” rather than a fresh foundation-laying programme.
Former CM Ashok Gehlot alleged that the BJP government stalled the project for several years, while the BJP has argued that renegotiation was necessary to make the project financially viable.
“I made several efforts as chief minister with then prime minister and all stakeholders to get the refinery project approved. I raised the demand at every platform. Initially, HPCL was not agreeable, but through continuous efforts I convinced the prime minister and the UPA chairperson for the refinery project,” Gehlot told PTI.
“When nearly 20 per cent of the country’s oil was being produced in Rajasthan, why could a refinery not be set up here? It was a very big project that could change the face of western Rajasthan and give a major boost to the country’s petroleum sector,” he said.
“With the vision that this project could change Rajasthan’s destiny, I continued my efforts and finally the Centre approved it for the state,” Gehlot said.
Gehlot accused the BJP government of delaying the project for political reasons.
“Unfortunately, after the government changed, the BJP kept the project hanging and it was delayed by five years. Sonia Gandhi had already laid the foundation stone, yet Modi did ‘work commencement’, which is not a good democratic tradition,” he said.
Countering him, former leader of opposition and senior BJP leader Rajendra Rathore said Sonia had laid the foundation days before the election code of conduct and the project lacked environment clearance.
He said the project will become a lifeline and transform western Rajasthan, similar to how the Indira Gandhi Canal has.
“In a state known for its sand dunes, sparse population and desert economy, the refinery is expected to usher in a new chapter of industrialisation and economic growth which will transform western Rajasthan into a major industrial and petrochemical hub,” he told PTI.
The project includes an energy-efficient and environment-friendly refinery-cum-petrochemical complex, pipelines for transportation of Rajasthan crude and imported crude, a water pipeline to the refinery site, captive power plant, storage facilities, township and allied infrastructure.
The refinery will process crude oil produced in Rajasthan as well as imported Arab Mix crude. It will produce BS-VI grade petrol and diesel along with petrochemical products such as polypropylene, butadiene, LLDPE, HDPE, benzene and toluene, according to a state mines department official.
1.5 to 2.5 MMTPA Rajasthan crude would be used in the refinery and any shortfall would be met through imported crude.
Butadiene, one of the refinery’s key outputs, is a crucial raw material for synthetic rubber used in the tyre industry, and is expected to reduce import dependence and strengthen the automotive sector, the official added.
The refinery is also expected to drive the development of construction, transportation, fabrication, machining, hospitality, heavy equipment supply and service industries in western parts of the state.
