HPCL’s ₹1.3 Lakh Crore Investment Plan: Expanding Refineries and Accelerating Clean Energy Transition – EQ
In Short : HPCL plans a ₹1.3 lakh crore investment over 15 years to expand refining capacity and boost renewable energy. The Visakhapatnam refinery upgrade is complete, while the Barmer refinery will be ready by 2025. HPCL targets 10 GW of renewable energy by 2030 and 1 MTPA biofuel production, allocating 25-35% of its annual capex to clean energy.
In Detail : Hindustan Petroleum Corporation Limited (HPCL) has announced plans to invest ₹1.3 lakh crore over the next 15 years to enhance its refining capacity and accelerate the shift towards clean energy. This long-term investment strategy is aimed at strengthening India’s energy security while ensuring a transition to sustainable fuel sources. The company is focusing on expanding its refinery operations and increasing renewable energy capacity.
As part of its expansion, HPCL successfully completed the Visakhapatnam refinery upgrade, increasing its capacity from 8.3 million metric tonnes per annum (MMTPA) to 15 MMTPA. Additionally, the Barmer refinery in Rajasthan, which is currently 84% complete, is expected to begin operations by 2025. These developments are set to significantly enhance HPCL’s refining capabilities and meet rising fuel demands.
Alongside refining, HPCL is also making significant strides in renewable energy. The company has set an ambitious target of achieving 10 gigawatts (GW) of renewable energy capacity by 2030, a sharp increase from its current capacity of over 200 megawatts (MW). To accelerate this transition, HPCL is actively investing in solar, wind, and other clean energy projects.
Biofuels are another key focus area, with HPCL aiming to achieve 1 million tonnes per annum (MTPA) of biofuel production. The company is developing multiple compressed biogas plants and ethanol-blending projects to support India’s goal of reducing reliance on fossil fuels. These initiatives align with the government’s push for cleaner, more sustainable energy alternatives.
HPCL has earmarked an annual capital expenditure of ₹12,000-15,000 crore, with 25-35% of this budget dedicated to new energy businesses. This significant investment reflects the company’s commitment to diversifying its portfolio while balancing traditional refining operations with future-ready energy solutions. The allocation towards clean energy is expected to rise as the transition gains momentum.
With these investments, HPCL aims to position itself as a key player in India’s evolving energy landscape. By expanding refining capacity, scaling up renewable energy, and promoting biofuels, the company is taking major steps toward a more sustainable and energy-secure future.
