Punjab govt backs HMEL’s Rs. 2,600 crore refinery and petrochemical expansion in Bhatinda. Project will create 500 jobs and strengthen industrial growth.

Sanjeev Arora, cabinet minister for industries and commerce, investment promotion, power, and NRI affairs, highlighted HPCL-Mittal Energy Ltd.’s (HMEL) substantial industrial contribution and future expansion plans on Tuesday. He also reaffirmed the State Government’s commitment to supporting large-scale investments and bolstering Punjab’s industrial ecosystem under the visionary leadership of National Convenor Arvind Kejriwal and Chief Minister Punjab S. Bhagwant Singh Mann.

We are intending to invest in a refinery and petrochemical complex in Bhatinda, according to Prabh Das, HMEL’s managing director and CEO. We manufacture polymers like polyethylene and polypropylene as well as fuels like gasoline, diesel, LPG, and ATF. The Punjabi people and the government provided us with unwavering support during the building and operation of this enormous complex. For the past many years, neither operations nor construction have been impacted, not even for a single day. The Punjab government’s proactive policies and ease of doing business are primarily to blame for this. We are lucky to have a forward-thinking, dynamic, reform-centric, development-oriented, and outcome-focused leader in Arora.

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One of Punjab’s most notable industrial success stories, according to Sanjeev Arora, is HMEL, a historic public-private partnership between Hindustan Petroleum Corporation Limited (HPCL), a Navratna and Fortune 500 PSU, and Mittal Energy Investment Pte. Ltd., Singapore (Lakshmi N. Mittal Group). He gave them his word that the government would fully support their plans to develop their plant in Punjab.

He pointed out that HMEL’s refinery and integrated petrochemical complex, which occupies roughly 2,000 acres in the village of Phulokheri, tehsil Talwandi Sabo, district Bathinda, began refinery operations in 2011. Since the petrochemical facility was added in 2023, value addition and downstream industrial activity in the State have significantly increased.

The Minister emphasized HMEL’s vital role in Punjab’s economy by pointing out that it now has an annual turnover of around Rs. 90,000 crore and contributes about Rs. 2,100 crore in taxes to the State exchequer. The project is one of Punjab’s biggest industrial employers, directly and indirectly employing close to 10,000 people.

He added that HMEL plays a vital role in supplying North India’s fuel needs by producing significant amounts of LPG, gasoline, and diesel. Furthermore, meeting around 14% of India’s total polymer demand, HMEL is the nation’s second-largest polymer producer. Sh. Sanjeev Arora mentioned recent advances, stating that a Bio-Ethanol Plant was put into service in 2024 next to the current refinery through its 100% subsidiary HMEL Organics Pvt. Ltd. (HOPL). Building upon this, HOPL has suggested a fine chemicals forward integration project that will require a phased investment of more than Rs. 2,600 crore.

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Punjab would be further positioned as a center for petrochemicals and value-added manufacturing thanks to the proposed expansion, which is anticipated to create around 500 new direct and indirect job opportunities, generate an additional yearly revenue of roughly Rs. 2,400 crore, and have high export potential.

Sh. Sanjeev Arora reaffirmed the government’s pro-industry stance, saying that the Punjabi government is still fully committed to enabling such significant investments through time-bound approvals, progressive policies, and an investor-centric ecosystem, guaranteeing the State’s continued industrial growth and job creation.