Rajasthan's Pachpadra Refinery Faces Further Delay Following Fire Incident

JODHPUR: Announced in 2013, relaunched in 2018, and held back by cost overruns, political shifts, construction hurdles and security disruptions — the Pachpadra refinery has now suffered a fire just a day before its scheduled inauguration in 2026. The wait for the country’s largest greenfield refinery at Pachpadra in Balotra, being built at a cost of Rs 79,459 crore, has stretched over more than a decade.

Now, just as the project was finally nearing inauguration after nearly 13 years, a fire in the main Crude Distillation Unit (CDU) on Monday has raised fears of another setback — potentially pushing commissioning back by up to a year. The journey of the Rajasthan refinery, which began with its foundation laying ceremony in 2013, has been far from smooth. Over the years, the project has witnessed two foundation ceremonies and multiple controversies, including land disputes that even led to internal conflicts among locals.

This recent incident has not only raised serious concerns about safety but has also dealt a major blow to Rajasthan’s economy. The refinery’s cost has already escalated significantly—from Rs 37,230 crore in 2013 to Rs 79,459 crore over the past 13 years. The story behind the refinery dates back to 2004, when the Mangala oil field was discovered in Barmer. Production began in 2009, which highlighted the need for a local refinery in Rajasthan.

On September 22, 2013, then UPA chairperson Sonia Gandhi laid the foundation stone for the refinery at Pachpadra, during the tenure of then chief minister Ashok Gehlot. The project was structured as a joint venture between HPCL (74%) and the Rajasthan government (26%), with an initial estimated cost of Rs 37,230 crore and a target completion by 2017–18. However, the timing of the announcement just before elections led to political complications. Before tendering and construction could begin, the Model Code of Conduct came into force, and after a change in government, the project got entangled in reassessment, cost escalation, and revised conditions.

When the BJP government led by Vasundhara Raje came to power, concerns over high subsidies, tax benefits, and low returns led to renegotiation and review, pushing the project into cold storage for nearly five years. The Congress accused the BJP of deliberately stalling the project, while the BJP maintained that a review was necessary to avoid financial losses. After years of delay and controversy, the project regained momentum. Prime Minister Narendra Modi relaunched the project on January 16, 2018, by which time the cost had risen to Rs 43,129 crore, with a revised completion target of October 31, 2022.

Subsequent political changes saw the return of the Congress government under Ashok Gehlot, and although work continued, progress remained slow due to land acquisition issues, environmental clearances, redesign, technical modifications, and rising costs. The COVID-19 pandemic in 2020–21 further stalled work. In 2023, after another change in government, the administration under Chief Minister Bhajan Lal Sharma approved a revised project cost of Rs 79,459 crore on April 8, 2026, setting a target for commercial operations from July 1, 2026.

However, the fire incident on April 20 has once again disrupted timelines. With 92% of the work reportedly completed just a day earlier, the blaze in the crucial CDU unit—where major refining operations were to take place—has dealt a significant setback to Rajasthan’s refinery ambitions. The extent of damage and the time required for recovery remain uncertain. The project also witnessed major land-related controversies. Initially planned in Lilana village of Baytu, large-scale land purchases by influential groups and resistance from farmers forced the government to shift the refinery to Pachpadra, where government land was available. The shift triggered political unrest, including opposition from then MLA Colonel Sonaram Chaudhary.

Notably, the refinery is a joint venture between HPCL (74%) and the Rajasthan government (26%). With an annual refining capacity of 9 million tonnes of crude oil, the project is expected to transform the desert landscape and boost regional development. On April 20, around 2pm, a fire broke out at the HPCL refinery site near Pachpadra. Prime Minister Narendra Modi was scheduled to inaugurate the refinery the next day, but the visit was postponed following the incident. The fire reportedly occurred in the Crude Distillation Unit (CDU), which had recently completed its trial run.