JAIPUR: The massive fire at the Pachpadra refinery on Monday has led to the indefinite postponement of its scheduled inauguration by Prime Minister Narendra Modi, raising concerns over potential losses and further delays in one of Rajasthan’s most ambitious industrial projects.
Government preparations for the high-profile inauguration, slated for Tuesday, were halted immediately after the incident. As news of the postponement spread, local residents began removing hoardings and cutouts of the Prime Minister along the route to Pachpadra. Videos circulating on social media also suggested that food prepared for the event went to waste.
According to officials at the spot, the blaze broke out in the Crude Distillation Unit (CDU) of the Hindustan Petroleum Corporation Limited (HPCL) refinery, the core unit where trial operations had recently been completed, and which was to be the focal point of the inauguration on Tuesday.
Engineers associated with the project told media outlets that the fire was brought under control within approximately two hours. They warned that had the flames spread further, two major units of the refinery could have been destroyed, potentially causing losses exceeding Rs 10,000 crore.
Meanwhile HPCL issued an official statement asserting that all units remain structurally sound and that other sections have not been affected. In its statement, HPCL confirmed that the fire broke out within the Crude Distillation Unit (CDU) section of the refinery and preliminary investigations suggest that a hydrocarbon leak from a valve flange within the heat exchanger circuit was the cause. The fire remained confined to the heat exchanger stack. The CDU, VDU, and other units were immediately isolated. All units are structurally safe, and no other sections have been impacted.
The testing was being done for the past three months but the incident has raised fresh concerns over safety standards at one of Rajasthan’s most ambitious industrial projects. It has also dealt a setback to the state’s economic expectations. The refinery project has already witnessed significant cost escalation over the past decade.
Originally estimated at Rs 37,000 crore when its foundation stone was laid in 2013 by Sonia Gandhi, the project cost rose to Rs 43,000 crore when it was re-launched in 2018 by Prime Minister Modi, with a target completion date of 2022. The deadline was missed, and by 2024 the cost had surged to Rs 72,000 crore, later touching nearly Rs 80,000 crore.
The Rajasthan government holds a 26% stake in the refinery, while HPCL owns the remaining 74%.
Industry estimates suggest that once operational, the refinery - designed with a capacity of 9 MMTPA - could generate monthly revenues in the range of Rs 30000 to Rs 40,000 crore for Rajasthan. Any delay in commissioning is therefore likely to result in substantial delay of revenue for the state apart from delay in employability to thousands of youth.
The CDU-VDU unit, where the fire broke out, is a critical component of the refinery. It is the primary stage where crude oil is processed into products such as petrol and diesel. Following the incident, repair work and damage assessment are expected to take between one to six months.
Following the incident Chief Minister Bhajanlal Sharma has ordered a high-level inquiry into this incident, in his statement Sharma said, "the fire incident at the HPCL Rajasthan Refinery in Pachpadra is extremely unfortunate. Directives have been issued for a high level inquiry into this incident. The grand inauguration of this refinery—a symbol of hope for all the people of the state—will soon be performed by the honorable Prime Minister." Sharma is scheduled to visit the refinery site on Tuesday to inspect the damage.The exact damage caused is yet to be assessed.
Reacting to the incident, former Chief Minister Ashok Gehlot said that a fire occurring just a day before the Prime Minister’s visit raises serious concerns. In a social media post, he called for a thorough investigation, suggesting that either the central or state government should consider a high-level probe if necessary.
Gehlot also recalled that the refinery project was initiated in 2013 during his tenure, with senior leaders including Sonia Gandhi and Veerappa Moily present at the foundation ceremony. He alleged that subsequent political developments stalled the project for several years, delaying its completion. He added that expectations had been high for the refinery’s inauguration and the economic benefits it would bring to Rajasthan, which have now been pushed further into uncertainty.