Rajasthan refinery dedication by PM postponed after fire near crude unit

The planned dedication of the Rajasthan refinery-cum-petrochemical complex at Pachpadra by Prime Minister Narendra Modi has been postponed after a fire broke out near the crude oil processing unit at the site, officials confirmed on Monday. The incident occurred just ahead of the scheduled inauguration of one of India’s largest greenfield energy projects.

The ₹79,450-crore project, developed by Hindustan Petroleum Corporation Limited (HPCL) in partnership with the Rajasthan government, is located in the Barmer-Balotra region and is designed as a major integrated refining and petrochemical hub. It has a planned capacity of 9 million metric tonnes per annum (MMTPA) along with a 2.4 MMTPA petrochemical unit , making it one of the most advanced energy complexes in the country.

The refinery is built with a high Nelson Complexity Index of around 17 , allowing it to process a wide range of crude oils, including heavier grades, and produce refined fuels such as petrol, diesel, aviation turbine fuel, along with petrochemical feedstocks. The petrochemical segment is expected to produce key industrial inputs like polypropylene and polyethylene, widely used in plastics, textiles, automotive manufacturing, and pharmaceuticals.

According to officials, the fire was reported near the crude unit area, prompting an emergency response and safety containment measures . While the situation was brought under control, the incident led to immediate safety reviews at the site . No casualties or major structural damage have been reported so far.

Following the incident, the government decided to postpone the refinery dedication ceremony, which was to be attended by PM Modi. The project remains strategically important for India’s energy security and import substitution goals , aimed at reducing dependence on imported fuels and boosting domestic petrochemical production.

Once operational, the complex is expected to transform western Rajasthan into a major industrial hub, generating employment and attracting downstream investments, including petrochemical and plastics-based industries. A revised inauguration date will be announced after regulatory clearance and safety verification .