A major fire broke out near the main unit of the newly built Rs 79,450-crore Rajasthan refinery of Hindustan Petroleum Corporation Ltd (HPCL) on Monday, a day before the scheduled inauguration by Prime Minister Narendra Modi.
Thick columns of black smoke emitted from the fire that broke out near the crude distillation unit -- the primary or front-end unit that is often referred to as the heart of an oil refinery.
The blaze at the HPCL Rajasthan Refinery Ltd (HRRL) refinery was doused in about two hours, with no reported casualties, officials said.
But the Prime Minister's event to dedicate to the nation the 9 million tonnes a year oil refinery-cum-petrochemical complex at Pachpadra in Balotra district of Rajasthan, which was scheduled for Tuesday, was postponed.
The Union Petroleum Ministry in a post on X announced the postponement of the event and said an investigation has been launched to determine the cause of the fire and implement corrective measures.
Refineries worldwide are highly susceptible to fires, explosions, and catastrophic failures during the commissioning and startup phases, as this period involves introducing hydrocarbons into new or maintained high-pressure, high-temperature systems. For this reason, inauguration ceremonies are performed after all units (a refinery typically as several units that turn crude oil pumped out of ground or below seabed into fuels like petrol and diesel at high temperatures) are safely commissioned and operations stabalised.
The refinery project was scheduled to begin commercial operations from July 1, according to a Government of India statement issued on April 8 announcing approval of the Union Cabinet to enhance the cost of the project.
This is not the first time a fire broke out at a refinery under commissioning. On January 30, 2016, a major fire broke out at Indian Oil Corporation's (IOC) Paradip refinery's atmospheric vacuum unit (AVU), just over a week before its scheduled inauguration by Prime Minister Modi on February 7, 2016. No injuries were reported even then. No reasons were assigned for the fire at Rajasthan project on Monday.
"Due to an unfortunate fire incident today in the vicinity of the Crude Distillation Unit at the HPCL Rajasthan Refinery Limited (HRRL) refinery, the scheduled dedication of the refinery by the Prime Minister on 21.04.2026 has been postponed. The fire has been brought under control. There are no reports of any casualties," the ministry said in a post on X. A revised date for the inauguration will be announced in due course, it added.
The Rajasthan refinery will be India's 24th and the second most complex unit yet in India. The refinery-cum-petrochemical complex, located in Rajasthan's Balotra district, is designed as a 9 million tonnes per annum facility with a strong petrochemical focus, reflecting India's strategy to boost value-added output and reduce import dependence.
It features a Nelson Complexity Index of 17 and petrochemical yields exceeding 26 per cent, aligning with global benchmarks for efficiency and sustainability, according to an official statement.
Refinery complexity -- often measured by the Nelson Complexity Index -- indicates the capability to handle heavier, dirtier crude oil (which is cheaper) and turn it into high-value products like gasoline and diesel. Reliance Industries Ltd's Jamnagar refinery in Gujarat is the world's most complex and largest refinery, featuring a complexity index of 21.1 and the capability to process over 216 different crude oil grades.
It is designed to convert low-value heavy/sour crude into high-value fuels, processing 1.24-1.4 million barrels per day (Rajasthan refinery has a processing capacity of 180,000 barrels per day).
HRRL is a joint venture between HPCL, which holds a 74 per cent stake, and the Government of Rajasthan with the remaining 26 per cent. Once operational, the complex will produce fuels, including petrol and diesel, along with petrochemicals such as polypropylene, polyethylene variants and key industrial chemicals like benzene and butadiene. These products are widely used across sectors ranging from transportation and packaging to pharmaceuticals and construction.
The project is expected to play a key role in improving India's energy security by processing domestically produced crude, including supplies from the Mangala fields in Rajasthan, while helping cut reliance on imported petrochemicals. It also aligns with New Delhi's broader push to position the country as a regional refining and manufacturing hub.
The opposition Congress alleged that the incident showed "safety lapses". "The Pachpadra refinery is a matter of pride for all Rajasthanis. The incident at such a time is extremely unfortunate. I pray for everyone's safety," former chief minister Ashok Gehlot said.
Leader of Opposition in the state assembly Tika Ram Jully termed the incident "serious and concerning" and questioned the state government's preparedness ahead of the high-profile event. He alleged that the incident pointed to lapses in safety and accused the government of rushing the arrangements for the event. He also said there were "delays" in the project's execution.
"This landmark project, with an investment of more than Rs 79,450 crore, represents a significant milestone in India's energy and petrochemical sector," an official statement said earlier.
