After 15 years of delays, disputes and setbacks, Rajasthan’s mega refinery finally ready for launch

Jaipur, July 3 (IANS) The HPCL Rajasthan Refinery Limited (HRRL) at Pachpadra in Rajasthan’s Balotra district is finally set to become operational after a 15-year journey marked by political controversies, land acquisition disputes, repeated delays, mounting costs and even a fire that postponed its inauguration at the last minute.

Prime Minister Narendra Modi will inaugurate the country’s first greenfield BS-VI-compliant integrated refinery-cum-petrochemical complex on Saturday. The refinery’s journey has been anything but straightforward.

It witnessed two foundation-stone laying ceremonies, several announced inauguration dates, bitter political confrontations over its location, land acquisition disputes, significant cost escalation and prolonged execution delays before reaching completion.

Prime Minister Modi was originally scheduled to inaugurate the refinery on April 21, 2026. However, a fire caused by a leak in the CDU-VDU unit on April 20 forced the postponement of the event, delaying the launch once again.

With a refining capacity of 9 million metric tonnes per annum (MMTPA) and one of the highest Nelson Complexity Index (NCI) ratings among Indian refineries, HRRL is expected to transform Rajasthan from a crude oil-producing state into a major petrochemical manufacturing hub.

The refinery was originally proposed at Lilala village in the Baytu region of present-day Balotra district. Following the announcement, influential businessmen, politicians and land speculators reportedly purchased thousands of bighas of land anticipating a sharp appreciation in prices.

However, when the government initiated land acquisition, many farmers refused to part with their land, with some reportedly demanding as much as Rs 1 crore per bigha.

Faced with mounting resistance, the then Ashok Gehlot-led Congress government shifted the refinery to Pachpadra, where adequate government land was available. The decision triggered intense political opposition.

Then Baytu MLA Colonel Sonaram Choudhary openly revolted against his own government, alleging that the refinery was being shifted to benefit the Jodhpur region by locating the downstream petrochemical complex at Kakani.

“I will sacrifice my life, but I will not allow the refinery to leave this place,” he had declared publicly.

The controversy deepened further when then Revenue Minister Hemaram Choudhary resigned, making the refinery one of Rajasthan’s most politically debated infrastructure projects.

Political controversies continue to surround the project. Former Chief Minister Ashok Gehlot recently alleged that work on the refinery remained stalled for five years during the previous BJP government in Rajasthan, resulting in a sharp escalation in project costs. The former Chief Minister described the refinery as a landmark project for Rajasthan’s development and said it deserved a grand public inauguration.

“I read in the newspapers today that the Prime Minister will hold a meeting inside the refinery complex instead of addressing a large public gathering. This project is a major milestone for Rajasthan, and it deserves a proper public inauguration,” he said.

Recalling the project’s origins, Gehlot said the refinery became possible after sustained efforts by the then Congress government following the discovery of oil in Barmer.

Claiming credit for the project, he said former Prime Minister Manmohan Singh and former Congress President Sonia Gandhi facilitated the formation of the refinery company through coordination between Hindustan Petroleum Corporation Limited (HPCL) and the Rajasthan government.

Responding to Gehlot’s remarks, BJP Rajya Sabha MP Rajendra Gehlot said that during Ashok Gehlot’s tenure as Chief Minister, neither refinery site was finalised properly nor was a concrete implementation plan or financial framework prepared.

“The foundation stone was laid in haste merely for political mileage,” he alleged.

Rajendra Gehlot further claimed that it was in 2016, under the then BJP government, that the project site was finalised and a structured financial plan was prepared.

He also alleged that between 2018 and 2023, the project witnessed little progress under the previous Congress government. “Instead of advancing the refinery work, the previous (Congress) government remained preoccupied with political concerns,” he said.

Meanwhile, HRRL is a joint venture between Hindustan Petroleum Corporation Limited (HPCL), which holds a 74 per cent stake, and the Government of Rajasthan, which owns the remaining 26 per cent. Although the project’s cost increased substantially from its original estimate, the refinery is now regarded as one of India’s most technologically advanced refining complexes.

Its Nelson Complexity Index (NCI) enables it to process heavy and lower-grade crude oil from across the world into premium products such as petrol, diesel, polypropylene and other petrochemicals with high efficiency.

While most heavy equipment, including reactors, columns and storage tanks, has been manufactured in India under the Atmanirbhar Bharat initiative, sophisticated control systems and high-pressure compressors have been sourced from the United States, Japan and Europe.

Specialists from the Netherlands supervised critical welding and finishing work to ensure global quality standards. Because Rajasthan’s crude oil contains a high wax content, engineers built a specially designed heated crude oil pipeline connecting Mundra in Gujarat to Pachpadra, complete with thermal insulation and heating stations to prevent the crude from solidifying during transportation.

Once fully operational, HRRL is expected to redefine Rajasthan’s industrial landscape. Beyond refining crude oil, the integrated refinery-cum-petrochemical complex will produce high-value petrochemical products such as polypropylene and polymers, paving the way for downstream plastic, packaging and chemical industries.

The project is expected to generate thousands of direct and indirect jobs, attract fresh investments, strengthen India’s energy security, reduce dependence on imported petrochemicals and position Rajasthan as one of the country’s emerging petrochemical hubs.

–IANS

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