Hindustan Petroleum Corporation Limited has informed the Exchange about General Updates
HINDPETRO · price
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HPCL has received approval from the Ministry of Petroleum & Natural Gas to revise the cost of its HPCL Rajasthan Refinery Limited (HRRL) project upward from Rs. 43,129 crore to Rs. 79,459 crore, an increase of about 84%. To maintain its 74% equity stake in the project, HPCL's equity investment has been set at Rs. 19,600 crore. HRRL is a greenfield integrated refinery and petrochemical complex with a high Nelson Complexity Index of 17 and petrochemical intensity of 26%. The project is currently in an advanced stage of commissioning, with trial runs of the crude distillation unit (CDU) and other units underway.
The sharp cost escalation signals significant project overruns and increases HPCL's committed equity outflow, which could pressure cash flows and future returns on this investment. However, nearing commissioning offers long-term revenue potential once operations stabilize.