HPCL delays refinery inauguration after fire at Rajasthan project site

State-run Hindustan Petroleum Corporation Ltd (HPCL) has postponed the inauguration of its refinery-cum-petrochemical project by Prime Minister Narendra Modi, scheduled for April 21 in Rajasthan’s Balotra district, due to a massive fire reported on Monday afternoon.

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A fire broke out in the vicinity of the crude distillation unit (CDU) of the refinery, but no casualties have been reported, the Ministry of Petroleum and Natural Gas (MoPNG) said.

“An investigation has been initiated to ascertain the cause(s) of the incident and to undertake necessary remedial measures. A revised date for the dedication will be announced in due course,” the ministry said in a post on X.

HPCL’s nine million tonnes per annum (mtpa) greenfield refinery-cum-petrochemical complex has been developed as a joint venture between HPCL and the Rajasthan government, with equity stakes of 74 per cent and 26 per cent, respectively.

Earlier in the month, the Cabinet Committee on Economic Affairs (CCEA) approved the investment cost of the HPCL Rajasthan Refinery Ltd (HRRL) project at Rs 79,459 crore, up from Rs 43,129 crore.

HRRL is being set up as a highly complex refinery with more than 26 per cent petrochemical product slate, and production capacity of 1 million tonne per annum (mtpa) of petrol and 4 mtpa of diesel. The project has 2.4 mtpa petrochemical production capacity.

The refinery will also produce 1 mtpa of polypropylene, 0.5 mtpa of linear low-density polyethylene (LLDPE), 0.5 mtpa of high-density polyethylene (HDPE), and around 0.4 mtpa of benzene, toluene, and butadiene.

“The project is expected to play a pivotal role in strengthening India’s energy security, enhancing petrochemical self-sufficiency, and driving industrial growth. It will serve as an anchor industry for the development of a Petrochemical and Plastic Park in the region, promoting downstream industries and ancillary sectors. Additionally, the refinery is poised to generate significant employment opportunities, contributing to the socio-economic development of the region,” said the government.