CCEA revises HPCL refinery cost, clears hydro, fertiliser projects

CCEA hikes HPCL refinery cost, clears hydro projects and Kharif fertiliser subsidy in a series of key approvals

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved a revision in the cost of the HPCL Rajasthan Refinery project, alongside other decisions spanning hydropower investments and fertiliser subsidies.

What changes has CCEA approved in HPCL refinery project cost?

The CCEA approved an increase in the project cost of HPCL Rajasthan Refinery Limited (HRRL) at Pachpadra, Rajasthan, from ₹43,129 crore to ₹79,459 crore. It also cleared an additional equity investment of ₹8,962 crore by Hindustan Petroleum Corporation Limited, taking its total equity contribution to ₹19,600 crore, the Cabinet said in a statement.

 

The government described HRRL as a “highly complex refinery with more than 26 per cent petrochemical product slate”. It added that the project will produce petrol and diesel along with petrochemicals such as polypropylene, LLDPE, HDPE, benzene, toluene, and butadiene, which are “critical to our energy and industrial ecosystem”.

 

 

It further said the project would “lead to energy independence and reduce import dependence of petrochemical sector” while supporting industries such as transportation, pharmaceuticals, paints, and packaging.

 

The scheduled commercial operation date has been set for July 1, 2026.

What is the Kamala hydro project approved by the Cabinet?

The Cabinet also cleared an investment of ₹26,069.50 crore for the 1,720 MW Kamala Hydro Electric Project in Arunachal Pradesh, to be implemented through a joint venture between NHPC Limited and the state government.

 

The project, as per the Cabinet, is expected to generate 6,870 million units of energy annually and will “strengthen power supply position in the state… support in peak demand management, contribute to national grid balancing and provide flood moderation benefit in the Brahmaputra valley”.

 

The Centre will extend financial support towards flood mitigation and enabling infrastructure such as roads, bridges, and transmission systems.

What details are known about the Kalai-II hydro project?

Another key approval includes ₹14,105.83 crore for the 1,200 MW Kalai-II Hydro Electric Project in Arunachal Pradesh’s Anjaw district, the Cabinet Committee announced.

 

The project, to be developed through a joint venture between THDC India Limited and the state government, is expected to generate 4,852.95 million units of electricity annually, the statement said.

 

The government said the project will “strengthen power supply in the state, support in peak demand management, and contribute to balancing the national grid,” and noted that it will be the first hydro project in the Lohit basin.

 

What fertiliser subsidy has been approved for Kharif 2026?

 

Separately, the Cabinet approved Nutrient-Based Subsidy (NBS) rates for phosphatic and potassic fertilisers for the Kharif 2026 season, with a budgetary outlay of about ₹41,533.81 crore.

 

The government said the move will “ensure availability of fertilisers to farmers at subsidised, affordable and reasonable prices” and involves “rationalisation of subsidy… in view of recent trends in the international prices”.

 

The outlay is higher than the ₹37,216.15 crore allocated for Kharif 2025, the CCEA said.