HPCL to Start Crude Processing at ₹73,000 Crore Barmer Refinery by Month-End

Hindustan Petroleum Corporation Ltd (HPCL) is set to begin crude processing at its landmark Rajasthan refinery-cum-petrochemical complex by the end of January, marking a major capacity expansion for the state-run refiner.

The project, being developed through HPCL Rajasthan Refinery Ltd (HRRL) — a 74:26 joint venture between HPCL and the Government of Rajasthan — involves an investment of ₹72,937 crore and is designed to process 9 million metric tonnes per annum (MMTPA) of crude.

Once operational, the Barmer-region complex is expected to position HPCL as India’s second-largest state-owned refiner by capacity after IndianOil, ahead of Bharat Petroleum Corp (BPCL).

HPCL Chairman and Managing Director Vikas Kaushal said crude has already reached the refinery’s storage tanks, and the 180,000 barrels-per-day (bpd) crude distillation unit (CDU) is scheduled to begin operations in the final week of January.

Refinery designed for heavy crude, diversified supply approach

The refinery has been configured to process heavy crude, while also allowing flexibility in sourcing as commissioning begins.

Market sources said early shipments have included crude grades from multiple origins including Azerbaijan (Azeri), Libya (Mesla), Angola (Nemba), and Nigeria (Okwuibome), supporting HPCL’s push to diversify supply channels and reduce exposure to regional disruptions.

Petrochemicals growth continues alongside refining expansion

HPCL’s broader strategy also includes scaling up petrochemicals and non-fuel revenue streams.

Its joint venture HPCL-Mittal Energy Ltd (HMEL), which operates the Bathinda refinery, announced a fresh ₹2,600 crore investment in December 2025 to set up polypropylene downstream industries and fine chemical projects, strengthening value-added output beyond fuels.

Market reaction and earnings backdrop

HPCL shares (NSE: HINDPETRO) closed marginally lower on Thursday at ₹427.60, down 0.34%.

The commissioning update follows the company’s latest quarterly performance, where HPCL reported a 58% year-on-year rise in consolidated net profit to ₹4,011 crore for the December quarter, supported by marketing strength even as refining margins remained under pressure.

Summary

HPCL will begin crude processing at its ₹72,937 crore HRRL refinery-cum-petrochemical complex in Rajasthan by late January 2026. The 9 MMTPA facility adds 180,000 bpd of capacity and strengthens HPCL’s national footprint, while the group also expands petrochemicals through HMEL’s ₹2,600 crore Bathinda downstream plan.

FAQs

Q1: When will the Barmer refinery start operations?

Crude processing is expected to begin by the end of January 2026, starting with the CDU.

Q2: What is the total investment in the project?

The complex cost is estimated at ₹72,937 crore.

Q3: Who owns HRRL?

HRRL is a JV between HPCL (74%) and the Government of Rajasthan (26%).

Q4: What is the refinery’s capacity?

9 MMTPA, equivalent to about 180,000 bpd.

Q5: Why is this project important for HPCL?

It significantly raises HPCL’s installed refining capacity and improves its ability to supply fuels and petrochemical feedstocks domestically.

Q6: What is HMEL’s ₹2,600 crore expansion plan?

HMEL will set up polypropylene downstream industries and fine chemical projects at Bathinda.