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Government-owned Hindustan Petroleum Corporation Ltd (HPCL) plans to add 3 million metric tonnes per annum (MMTPA) of refining capacity to its Visakh facility over the next three years, according to a senior company official. With this expansion, the Visakh refinery’s capacity will rise to 18 MMTPA, up from the current 15 MMTPA recorded in the financial year 2024-25. Previously, HPCL had increased the refinery's capacity from 8.3 MMTPA to 15 MMTPA in 2023.
Speaking to media representatives, R. Ramakrishnan, Executive Director-Operations at HPCL Visakh Refinery, located near Visakhapatnam, Andhra Pradesh, stated: “We achieved a production capacity of 15 MMTPA. Now, we have set a target to reach 16 MMTPA this year, i.e., financial year 2025-26 (April-March), and then 18 MMTPA in the next three to four years. The company aims to further expand the Visakh Refinery’s capacity to 20 MMTPA by 2031-32.”
HPCL, a government-run entity, operates two refineries - the Visakh Refinery and the Mumbai Refinery. The Mumbai Refinery’s current production capacity is approximately 10 MMTPA. However, due to land and other constraints, there is limited scope for further expansion at this site.
One metric tonne of crude oil is equivalent to 7.3 barrels. During the financial year 2024-25, HPCL recorded its highest-ever refinery throughput at 25.27 MMTPA. This included 9.96 MMTPA processed at the Mumbai Refinery and 15.31 MMTPA at the Visakh Refinery.
Joint venture projects
Hindustan Petroleum Corporation Ltd (HPCL) is also involved in the Mangalore Refinery through a joint venture. Oil and Natural Gas Corporation (ONGC) holds a majority equity stake of 71.63 percent in Mangalore Refinery and Petrochemicals Ltd (MRPL), while HPCL owns a 16.96 percent stake. The production capacity of the MRPL refinery, located in Mangalore, Karnataka, stands at 15 MMTPA. Additionally, HPCL operates a refinery near Bathinda, Punjab, in a joint venture with Mittal Energy.
HPCL-Mittal Energy owns and operates the Guru Gobind Singh Refinery, which has a capacity of 11.3 MMTPA. The expansion of the Mumbai refinery has already been completed, while the Rs 73,000 crore Barmer refinery in Rajasthan, currently 84 percent complete, is targeted for commissioning in 2025.
HPCL currently operates refineries with a total capacity of 45 MMTPA. Operating at 110 percent efficiency, this capacity is expected to reach 50 MMTPA in a time-bound manner. The company has also made pre-investments to expand the Barmer refinery's capacity to 18 MMTPA, which will be evaluated based on demand growth.
Overall investment
The company plans to enhance its refining capacity, scale up renewable energy projects, and increase biofuel production as part of its long-term growth strategy. An estimated investment of Rs 1.3 lakh crore over the next 15 years will support this transition towards cleaner energy. Speaking at a recent event, HPCL Chairman and Managing Director Rajneesh Narang said, “The company aims to increase its refining capacity, scale up renewable energy projects, and enhance biofuel production as part of its long-term growth strategy.”
In addition to refining, HPCL is significantly expanding its renewable energy portfolio, targeting 10 GW capacity by 2030. The company’s current renewable energy capacity exceeds 200 MW, which is expected to double by March 2025 and surpass 1 GW by 2026. Investments are being made in solar parks, hybrid energy projects, and rooftop solar installations at refineries and depots to reduce carbon emissions.
HPCL is also boosting biofuel production, with a target of achieving 1 million tonnes per annum. The company has established compressed biogas (CBG) plants in Budaun, Uttar Pradesh, and Rajasthan, with plans to set up 24 additional plants across states, including Punjab and Uttar Pradesh. Annual capital expenditure is projected at Rs 12,000-15,000 crore, with 25-35 percent of future investments earmarked for new energy businesses such as city gas distribution (CGD), renewable energy, and biofuels.
India’s total refining capacity is 258 MMTPA, with government-run firms controlling 61 percent. Among public sector companies, Indian Oil Corporation Ltd holds the largest refining capacity, followed by HPCL. The Indian government, led by Prime Minister Narendra Modi, aims to increase the country’s total refining capacity to 450 MMTPA by 2030. Expanding refining capacity is crucial for India’s energy security and export potential. While the country is one of the largest crude oil importers, it is also a significant exporter of finished petroleum products.
HPCL aims to expand its crude oil refining and petrochemical production without compromising on its carbon emissions reduction target, striving to achieve net zero by 2040. The company is currently developing India’s first integrated grassroots refinery-cum-petrochemical complex at Pachpadra (Balotra) in Rajasthan. This project, a joint venture between HPCL and the Rajasthan government under HPCL Rajasthan Refinery Limited (HRRL), features a Petrochemical Intensity Index (PII) of 26 percent, the highest in India.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
