Jaipur Metro Phase 2: Cabinet clears 41-km corridor, approves Rs 1.74 lakh crore projects, Rs 79,459 crore HPCL refinery — Key details

India’s infrastructure and energy roadmap received a major boost on April 8, 2026, as the Union Cabinet approved projects worth Rs 1.74 lakh crore, with a sharp focus on Rajasthan - particularly Jaipur Metro Phase 2 and the HPCL refinery expansion - while factoring in rising global costs linked to the Iran conflict and supply disruptions.

The decisions span fertiliser subsidies for Kharif 2026, a massive expansion of the HPCL Rajasthan refinery, Jaipur Metro’s second phase, and two large hydropower projects. Officials indicated that global volatility, especially due to tensions involving Iran, has influenced subsidy calculations and energy planning, making this package both strategic and timely.

Jaipur Metro Phase 2 gets Rs 13,038 crore nod

Add Zee Business as a Preferred Source

Urban mobility in Rajasthan is set for a significant upgrade with the Cabinet approving Jaipur Metro Phase 2 at an estimated cost of Rs 13,038 crore.

The project will cover a 41-km corridor from Prahladpura to Todi Mod, expanding connectivity across Jaipur and easing congestion in one of India’s fastest-growing urban centres. The move is expected to improve daily commute efficiency, reduce traffic load, and support economic activity in the region.

With Jaipur emerging as a key urban hub, the metro expansion is likely to have a long-term impact on real estate, employment, and intra-city connectivity.

Rs 79,459 crore HPCL Rajasthan refinery

A major highlight is the approval of the HPCL Rajasthan Refinery project at a revised cost of Rs 79,459 crore, along with an equity contribution of Rs 19,600 crore.

Located in Pachpadra in Balotra district, the refinery will have a capacity of 9 MMTPA and is expected to begin commercial operations in July 2026.

The project is projected to generate around 1 lakh jobs during the construction phase and about 10,000 direct jobs once operational, alongside significant indirect employment. It is also expected to contribute roughly Rs 21,000 crore annually to the Centre and state exchequer, strengthening fiscal inflows.

Officials described the refinery as a key pillar in enhancing India’s energy security, especially at a time when geopolitical tensions, including the Iran situation, are affecting global oil supply chains.

Fertiliser subsidy raised to Rs 41,534 crore for Kharif 2026

Reflecting global price pressures, the Cabinet approved a nutrient-based subsidy (NBS) of Rs 41,534 crore for the Kharif 2026 season - higher than last year’s allocation.

The subsidy will apply from April 1 to September 30, 2026, covering phosphatic and potassic fertilisers. Despite rising international prices, the government has kept DAP (Di-Ammonium Phosphate) prices unchanged at Rs 1,350 per 50 kg bag to shield farmers.

Union Minister Ashwini Vaishnaw said geopolitical developments, including the Iran-linked disruptions, have been factored into the decision, particularly due to their impact on inputs such as potash and sulphur sourced from West Asia.

The move aims to ensure fertiliser availability and price stability ahead of the crucial sowing season.

Two hydropower projects worth over Rs 40,000 crore cleared

The Cabinet also approved two major hydroelectric projects to strengthen renewable energy capacity:

• Kamala Hydro Electric Project (1,720 MW) - Rs 26,070 crore
• Kalai-II Hydro Electric Project (1,200 MW) - Rs 14,106 crore