Fire at HRRL Refinery Delays PM Modi’s Inauguration; No Casualties Reported – Indian PSU

A planned inauguration of the HPCL Rajasthan Refinery (HRRL) by Narendra Modi on Tuesday has been postponed following a fire incident at the facility in Rajasthan’s Balotra district, the Ministry of Petroleum and Natural Gas (MoPNG) said.

The fire broke out on Monday afternoon in the refinery’s Crude Distillation Unit (CDU), a key primary processing unit. Authorities confirmed that the blaze has been brought under control and no casualties have been reported. A detailed probe has been initiated to determine the cause.

According to Hindustan Petroleum Corporation Limited (HPCL), preliminary findings suggest that a leakage of hydrocarbons from a valve or flange in the heat exchanger circuit may have triggered the fire. The incident remained localized within the heat exchanger stack, and all major units—including the CDU and Vacuum Distillation Unit (VDU)—were quickly isolated.

HPCL added that all units are structurally safe, and no other sections of the refinery have been affected. Emergency response teams, along with local administration, acted swiftly to contain the situation.

The Ministry, in an official statement, said a revised date for the inauguration will be announced after a thorough assessment and necessary remedial measures.

The nearly ₹80,000-crore HRRL refinery is India’s first greenfield refinery since Indian Oil Corporation commissioned its Paradip refinery in 2016.

• Capacity: 9 million tonnes per annum (mtpa), including 2.4 mtpa petrochemicals
• Feedstock: ~7.5 mtpa imported crude + 1.5 mtpa domestic crude
• Ownership: Joint venture between Hindustan Petroleum Corporation Limited (74%) and the Rajasthan government (26%)
• Complexity: Nelson Complexity Index of 17—among the highest for PSU refineries

The refinery is designed to produce Bharat Stage VI (BS-VI) fuels and a range of petrochemicals, aligning with India’s growing demand for cleaner fuels and downstream products.

Why This Matters

• The HRRL refinery is a critical addition to India’s refining capacity, expected to push the national total close to 270 mtpa.
• India, already the world’s third-largest oil consumer and fourth-largest refiner, is projected to be the largest driver of global oil demand growth in the coming years.
• The project also strengthens petrochemical capacity, where India still lags behind developed economies in per-capita consumption.

Context: Refinery Risks During Commissioning

Incidents during pre-commissioning and commissioning phases are not uncommon, as systems begin handling hydrocarbons under operational conditions. A similar fire had occurred at the Paradip refinery shortly before its inauguration in 2016.