New Delhi | Updated: July 4, 2026
Prime Minister Narendra Modi on Saturday inaugurated the HPCL Rajasthan Refinery Limited at Pachpadra in Balotra district, marking the commissioning of India’s first greenfield refinery in nearly a decade.
Built at a cost of ₹79,459 crore, the refinery is expected to boost India’s refining and petrochemical capacity and support the country’s ambition to become a global refining hub.
The project is a joint venture between Hindustan Petroleum Corporation Limited and the Rajasthan government. HPCL holds a 74 percent stake, while the Rajasthan government holds the remaining 26 percent.
The Prime Minister was earlier scheduled to inaugurate the refinery in April, but the event was postponed after a fire broke out on April 20 in the crude distillation unit. The unit is a key part of the refinery where crude oil is heated and separated into different petroleum products.
The HRRL refinery is India’s first greenfield refinery to be commissioned since Indian Oil Corporation Limited’s Paradip refinery in Odisha, which became operational in 2016.
The refinery has a capacity of 9 million metric tonnes per annum and an integrated petrochemical capacity of 2.4 million metric tonnes per annum.
Located close to Rajasthan’s Barmer oil fields, the refinery is expected to reduce crude transportation costs and strengthen domestic production of petroleum and petrochemical products.
The refinery can produce petrol, high-speed diesel, polypropylene, high-density polyethylene, butadiene, benzene, and toluene. These products are expected to help reduce India’s dependence on imports of several petrochemical items.
The plant uses modern technology and has been assigned a Nelson Complexity Index of 17, which is significantly higher than the global average of 8 to 10. The index reflects a refinery’s ability to process heavier crude into higher-value petroleum products.
According to the Petroleum Ministry, the refinery began commercial operations on June 22. Petrol, diesel, and petroleum coke have already been invoiced from the plant.
Petroleum Minister Hardeep Singh Puri said the Rajasthan refinery would strengthen India’s position as one of the world’s leading refining centers.
India is currently Asia’s second-largest and the world’s fourth-largest refiner. The country has 23 refineries with a combined capacity of around 258.1 million metric tons per annum in FY 2025.
The government expects India’s refining capacity to rise to around 309.5 million metric tons per annum by 2030. Long-term plans aim to expand total refining capacity to 400-450 million metric tons per annum.
Puri said India is well positioned to emerge as a global refining hub by 2030, especially as refining capacity in Europe continues to decline and the United States has not commissioned a new greenfield refinery in the past 50 years.
The Rajasthan refinery has had a long journey to commissioning. The project was first announced in 2013 during the UPA-2 government, when Sonia Gandhi laid its foundation stone.
It later faced delays due to cost escalation and implementation challenges. The project was revived by the BJP-led Rajasthan government in 2017, and Prime Minister Modi laid the foundation stone again in 2018.
Although the refinery is a major addition to India’s energy infrastructure, it is not the country’s largest refinery. HPCL’s Visakhapatnam refinery has a capacity of 15 million metric tonnes per annum, while its Mumbai refinery has a capacity of 9.5 million metric tonnes per annum.
HPCL-Mittal Energy Limited operates an 11.3 million metric tons per annum refinery, while IOCL’s Paradip and Panipat refineries have a capacity of 15 million metric tons per annum each.
The commissioning of the Rajasthan refinery is being seen as a major boost for energy security, petrochemical production, industrial growth, and employment generation in western India.
