Editor’s Note
After years of anticipation, a major refinery project in Rajasthan is set to begin operations, promising significant economic impact for the region.
The Pachpadra refinery in western Rajasthan is now on the threshold of commencement. This project, worth approximately 72,000 crore rupees, will begin oil production in December 2025, giving a new pace to the state’s economy.
Balotra. The sands of western Rajasthan are now ready to yield ‘gold’ in the form of oil. After a long wait of nearly 12 years, hope has been rekindled for the start of the HPCL refinery in Pachpadra, Balotra district. Chief Minister Bhajanlal Sharma has indicated that the refinery will start by December 2025.
This project, being prepared at a cost of around 72,000 crore rupees, will prove to be a major turning point for Rajasthan’s economy, opening up new opportunities for investment and employment. According to information, Chief Minister Sharma recently met Prime Minister Narendra Modi in New Delhi, submitted a progress report on the project, and requested time for the inauguration. Sources indicate that the government could launch this mega project on the occasion of its second anniversary.
During a recent interaction with migrant Rajasthanis in Kolkata, the Chief Minister said that a Rajasthan Petro Zone is being developed to promote downstream industries, with work having started in 11 blocks. He informed that the state government has a 26 percent stake in the refinery project. This refinery will create thousands of direct and millions of indirect jobs, directly benefiting the youth of Balotra, Barmer, Jaisalmer, and Jodhpur.
The refinery will not be limited to just petrol and diesel. Petrochemical products will also be manufactured here, which will be used to produce plastics, fibers, detergents, and other industrial goods. Major projects related to road connectivity and power supply for the refinery are in their final stages.
The process of land allocation in the Rajasthan Petro Zone to promote downstream industries is ongoing. In this context, there is hope that the refinery will change the fortunes of western Rajasthan. It will empower the state economically while also making it a petrochemical hub.
This project has had a 12-year journey. In 2013, then Congress President Sonia Gandhi laid the foundation stone for the refinery at a cost of 37,000 crore. Then, the Vasundhara Raje government revised the old financial model and presented a modified version in 2017. In 2018, Prime Minister Narendra Modi relaunched the project at a cost of 43,129 crore. Later, the Congress government called it a ‘Dream Project’, but the pace of work remained slow due to COVID-19 and administrative reasons. The current BJP government claims that 95 percent of the work is complete and production will start from December.