The Union Cabinet on Wednesday approved projects worth Rs 1.74 lakh crore on Wednesday, including an HPCL refinery for the state of Rajasthan worth Rs 79,459 crore.
According to Union Minister for Railways Ashwini Vaishnaw, the new HPCL Rajasthan refinery will boost India's refining capacity by 9 MMTPA.
The construction of the refinery, located in Pachpadra in Rajasthan's Balotra district is complete and commercial operations are expected to commence in July 2026, Vaishnaw said. Further, the cabinet has also approved HPCL equity contribution of Rs 19,600 crore
Two hydro projects —Kamala Hydro Electric Project (1,720 MW) and Kalai-ll Hydro Electric Project (1,200 MW) have also been given the cabinet nod for a cumulative value of neary Rs 40,000 crore.
Notably, the Cabinet has also given a go-ahead to Jaipur Metro's Phase 2 for Rs 13,038 crore.
The Union Minister also announced the completion and commissioning of crude pipeline from Mundra, which will help boostproduction of MS (Motor Spirit ) and HSD (High-Speed Diesel), Polypropylene, LLDPE, HDPE, Benzene, Butadine, Sulphur, LPG, and so on.
The new Polypropylene facility will be a world scale Polypropylene plant and India's largest Polyethylene plant, Vaishnaw underlined. It is expeced to improve domestic refining capacity and promote downstream industries.
ALSO READ: Cabinet Okays Rs 41,500-Crore Fertilizer Subsidy To Shield Farmers This Kharif
Fertilizer Subsidy On West Asia Impact
The Union Cabinet has approved a subsidy outlay of approximately Rs 41,533.81 crore for phosphatic and potassic (P&K) fertilisers for the Kharif 2026 season, in a move aimed at protecting farmers from volatile global input costs and ensuring adequate nutrient availability.
The decision pertains to the fixing of Nutrient Based Subsidy (NBS) rates for the Kharif season (April 1, 2026 to September 30, 2026). The approved outlay marks an increase of around Rs 4,317 crore compared to the Rs 37,216.15 crore allocated for Kharif 2025, reflecting higher global fertiliser prices and input costs.
Addressing the media, Union Minister Ashwini Vaishnaw highlighted the role of geopolitical tensions in shaping the decision.
He noted that the ongoing situation in West Asia has had a direct bearing on fertiliser supply chains, particularly as key inputs such as potash and sulphur-based fertilisers are sourced from the Middle East. “The impact of the war has been taken into consideration in today's decision,” he said.
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