The Government of India has authorised an 84% increase in the budget of HPCL’s Rajasthan refinery, bringing the total investment to ₹794.59 billion ($8.60 billion). The project will be undertaken jointly by Hindustan Petroleum Corporation Limited (HPCL), which holds a 74% share, and the Government of Rajasthan, which holds the remaining 26%.
New Delhi also approved an additional equity investment of ₹89.62 billion by HPCL. The state-run refiner’s total equity investment after the increase will be ₹196 billion. As per Mr Ashwini Vaishnaw, Minister of Information, the plant would begin operations by July this year.
Upon completion, the project is expected to make a significant contribution to the local economy by creating about 10,000 jobs. The rationale for building such an oil refinery is that it can handle both local and imported crude oil. This is significant because crude oil from different countries has different densities and textures.
Among other products, it will manufacture various petroleum products, such as petrol, diesel, benzene, and polypropylene. The raw materials that can serve as inputs to various industries, such as transportation, pharmaceuticals, and the painting industry.
By manufacturing these products domestically, India hopes to greatly reduce the need for expensive imports. In fact, this venture goes beyond the simple production of fuel; this is an effort by India towards self-sufficiency and industrialisation that would increase energy security for the country and create many new jobs in the process.
