Rajasthan Refinery Resumes Production After April Fire, Key Products Now Available

NEW DELHI: HPCL Rajasthan Refinery Limited (HRRL) has resumed production of key petroleum products after a fire disrupted operations in April, the company announced in a regulatory filing.

The fire occurred on April 20, a day before Prime Minister Narendra Modi was scheduled to inaugurate the refinery. A localized blaze in a heat exchanger circuit, caused by a suspected hydrocarbon leak from a valve or flange, halted commissioning. No injuries or fatalities were reported, and only the affected unit was isolated.

Production has now restarted for BS VI-compliant high-speed diesel (HSD), liquefied petroleum gas (LPG), petroleum coke (petcoke), and naphtha, according to the filing. BS VI-compliant motor spirit (MS) production is expected to begin next week. Sale of LPG and petcoke has already commenced, and the first batch of HSD is likely to be dispatched by the end of this week. Sales of MS will follow after production starts.

“All product streams from CDU/VDU (crude and vacuum distillation unit) are being produced and routed to the respective tanks for downstream processing,” the company said in its exchange filing.

HRRL is a joint venture between state-owned Hindustan Petroleum Corporation Limited (HPCL), holding a 74% stake, and the Rajasthan government, with the remaining 26%. The refinery and petrochemical complex, located in Balotra district, is designed to process 9 million tonnes of crude oil annually. Its products include petrol, diesel, and petrochemicals such as polypropylene, high- and linear low-density polyethylene, benzene, toluene, and butadiene.

The total cost of the project is estimated at Rs 79,450 crore. The fire incident had caused a temporary setback, but officials confirmed that no other section of the refinery was damaged, and all safety measures have been implemented.