Hindustan Petroleum Corporation Limited (HPCL) said a leak was the likely cause of the fire at its joint venture refinery in Rajasthan, and restoration work is expected to be completed within three to four weeks, with the crude distillation unit (CDU) restart likely in the second half of May.
A major fire broke out near the main unit of the newly built ₹79,450-crore refinery of HPCL Rajasthan Refinery Ltd on April 20, a day before the scheduled inauguration by Prime Minister Narendra Modi.
The fire in the crude distillation unit -- the main unit of a refinery -- was likely caused by a hydrocarbon leak from a valve or flange in a heat exchanger circuit.
In a stock exchange filing, HPCL said a detailed investigations into the April 20 incident confirmed the fire was localised to the heat exchanger stack, impacting six exchangers and associated equipment.
"Basis circumstantial evidence, the cause of fire is suspected to be leakage from pressure gauge tapping point on the vacuum residue exchanger inlet line," it said.
"The restoration work is in progress and it is expected to get completed in next 3-4 weeks. CDU restart is anticipated in 2nd fortnight of May 2026." Other secondary units are at an advanced stage of commissioning and are progressing as planned, HPCL said.
Trial production of key fuels, including LPG, petrol, diesel and naphtha is expected to begin within May, followed by stabilisation and full commissioning of the units.
The scheduled April 21 dedication of the refinery has been postponed, with a revised date to be announced.
The Ministry of Petroleum and Natural Gas has instituted a separate inquiry into the incident with former MRPL Managing Director M Venkatesh leading a four-member probe team.
Refineries worldwide are highly susceptible to fires, explosions, and catastrophic failures during the commissioning and startup phases, as this period involves introducing hydrocarbons into new or maintained high-pressure, high-temperature systems.
For this reason, inauguration ceremonies are performed after all units (a refinery typically has several units that turn crude oil pumped out of the ground or below the seabed into fuels like petrol and diesel at high temperatures) are safely commissioned and operations stabilised.
The refinery project was scheduled to begin commercial operations from July 1, according to a Government of India statement issued on April 8, announcing approval of the Union Cabinet to enhance the cost of the project.
This is not the first time a fire has broken out at a refinery under commissioning. On January 30, 2016, a major fire broke out at Indian Oil Corporation's (IOC) Paradip refinery's atmospheric vacuum unit (AVU), just over a week before its scheduled inauguration by Prime Minister Modi on February 7, 2016. No injuries were reported even then.
The Rajasthan refinery will be India's 24th and the second most complex unit yet in India.
The refinery-cum-petrochemical complex, located in Rajasthan's Balotra district, is designed as a 9 million tonnes per annum facility with a strong petrochemical focus, reflecting India's strategy to boost value-added output and reduce import dependence.
It features a Nelson Complexity Index of 17 and petrochemical yields exceeding 26 per cent, aligning with global benchmarks for efficiency and sustainability, according to an official statement.
Refinery complexity -- often measured by the Nelson Complexity Index -- indicates the capability to handle heavier, dirtier crude oil (which is cheaper) and turn it into high-value products like gasoline and diesel.
Reliance Industries Ltd's Jamnagar refinery in Gujarat is the world's most complex and largest refinery, featuring a complexity index of 21.1 and the capability to process over 216 different crude oil grades. It is designed to convert low-value heavy/sour crude into high-value fuels, processing 1.24-1.4 million barrels per day (Rajasthan refinery has a processing capacity of 180,000 barrels per day).
HRRL is a joint venture between HPCL, which holds a 74 per cent stake, and the Government of Rajasthan with the remaining 26 per cent.
Once operational, the complex will produce fuels, including petrol and diesel, along with petrochemicals such as polypropylene, polyethylene variants and key industrial chemicals like benzene and butadiene.
These products are widely used across sectors ranging from transportation and packaging to pharmaceuticals and construction.
Published on April 26, 2026