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Home Chandigarh

Cabinet Minister Sanjeev Arora Highlights HMEL’s Major Industrial Expansion Plans of 2600 Crores in Punjab

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December 23, 2025
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Chandigarh, 23 December 2025:

Cabinet Minister for Industries & Commerce, Investment Promotion, Power & NRI Affairs, Government of Punjab, Sh. Sanjeev Arora, on Tuesday highlighted the significant industrial contribution and future expansion plans of HPCL–Mittal Energy Ltd. (HMEL), reaffirming the State Government’s commitment under the visionary leadership of National Convenor Sh. Arvind Kejriwal and Chief Minister Punjab S. Bhagwant Singh Mann to support large-scale investments and strengthen Punjab’s industrial ecosystem.

Shri Prabh Das, Managing Director & CEO, HMEL said that we are going to invest in a refinery and petrochemical complex in Bhatinda. We produce fuels like petrol, diesel, LPG, ATF, along with polymers including polyethylene and polypropylene. We got full support from people of Punjab as well as the government during construction and operations of this massive complex. So far, neither construction or operations have been affected even for a day during the last so many years. This is mainly due to proactive policies and ease of doing business of the Punjab government. We are fortunate to have a farsighted leader, Shri Sanjeev Arora, who is dynamic, reform centric, development oriented and outcome focused. He said that under Sanjeev Arora dynamic leadership, Punjab’s industrial growth will create new opportunities for entrepreneurs, industries, and youth of the state.

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Sh. Sanjeev Arora said that HMEL stands as a landmark 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), and has emerged as one of Punjab’s most significant industrial success stories. He assured them that they will get full government support for expanding their plant in Punjab.

He noted that HMEL’s refinery and integrated petrochemical complex, spread over about 2,000 acres at village Phulokheri, tehsil Talwandi Sabo, district Bathinda, commenced refinery operations in 2011, while the addition of the petrochemical facility in 2023 has substantially enhanced value addition and downstream industrial activity in the State.

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The Minister highlighted that HMEL currently has an annual turnover of approximately Rs. 90,000 crore and contributes around Rs. 2,100 crore annually to the State exchequer in the shape of taxes, underlining its critical role in Punjab’s economy. The project provides employment to nearly 10,000 persons, both directly and indirectly, making it one of the largest industrial employers in Punjab.

He further pointed out that HMEL produces substantial quantities of LPG, petrol and diesel, playing a crucial role in meeting the fuel requirements of North India. In addition, HMEL is the second-largest producer of polymers in India, catering to nearly 14 per cent of the country’s total polymer demand.

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Referring to recent developments, Sh. Sanjeev Arora said that through its 100 percent subsidiary HMEL Organics Pvt. Ltd. (HOPL), a Bio-Ethanol Plant was commissioned in 2024 adjoining the existing refinery. Building on this, HOPL has proposed a forward integration project in fine chemicals, involving a phased investment of over Rs. 2,600 crore.

The proposed expansion is expected to generate around 500 additional direct and indirect employment opportunities, result in an additional annual turnover of about Rs. 2,400 crore, and has strong export potential, further positioning Punjab as a hub for petrochemicals and value-added manufacturing.

Reiterating the Government’s pro-industry approach, Sh. Sanjeev Arora stated that the Government of Punjab remains fully committed to facilitating such large-scale investments through progressive policies, time-bound approvals, and an investor-centric ecosystem, ensuring sustained industrial growth and employment generation in the State.

Shri Prabh Das, Managing Director & CEO, HMEL; Shri Sanjeev Malhotra, Vice President, HMEL; Shri Vishav Bandhu, Chief State Coordinator, HMEL; Ms. Seema Bansal, Vice Chairperson, Punjab Development Commission; and Shri  Amit Dhaka, IAS, CEO, Punjab Invest were present during the press conference.

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