Barmer, April 22 -- The massive fire that tore through a key processing unit at the Pachpadra refinery in Rajasthan's Balotra district on Monday, just a day before its scheduled inauguration by Prime Minister Narendra Modi, is likely to delay the facility's full-scale operations by eight to 10 months, escalate costs for the project, and affect employment opportunities, officials aware of the matter said. Parliamentary affairs, however, said on Tuesday that the refinery will begin commercial production as per schedule once restoration work is completed. The blaze erupted around 2.00pm in a critical processing section of the refinery operated by HPCL Rajasthan Refinery Ltd. Preliminary findings indicate that a hydrocarbon leakage in the heat exchanger circuit of the Crude Distillation Unit (CDU) triggered the fire during trial operations. Engineers at the site said friction during testing may have generated sparks, rapidly escalating into a massive blaze. Officials confirmed that the fire impacted two of the refinery's most vital units-the CDU and the Vacuum Distillation Unit (VDU)-which are central to processing crude oil into fuels such as petrol and diesel. The CDU and VDU units alone account for nearly 8-12% of the total project cost. Emergency protocols, including automated fire suppression systems and sirens, were activated immediately, helping bring the situation under control within approximately two hours. While the quick response averted a catastrophic escalation, technical experts warned of serious implications. A senior engineer associated with the commissioning process said that had the fire spread further, it could have destroyed both units, resulting in losses exceeding Rs.10,000 crore. "Damage assessment is still underway, but restarting operations could take eight to ten months, and even longer if critical equipment needs to be imported," the engineer said, adding that losses could run into thousands of crores. On Tuesday, Rajasthan chief minister Bhajanlal Sharma, along with cabinet minister Jogaram Patel and chief secretary V Srinivas, visited the site to review the situation. Security has been tightened, with restricted access to the facility. Addressing a press conference, Patel said the refinery was scheduled to be inaugurated by Narendra Modi, but the programme has been deferred for now in view of the recent development. He informed that the refinery suffered damage only in a limited section due to the leakage. "To determine the exact cause, experts and technical teams from other refineries are being called in for a detailed investigation and to ensure a long-term solution," he said. Reassuring that operations will resume after repairs, the minister said, "The refinery will begin commercial production as per schedule once restoration work is completed." He added that administrative and technical teams are constantly monitoring to prevent recurrence of such incidents. The Union ministry of petroleum and natural gas has constituted a high-level committee with external experts to investigate the root cause and recommend corrective measures. The refinery, with a capacity of 9 million metric tonnes per annum, was nearing completion-about 92% finished-and was expected to begin commercial production by July 2026. However, the fire has not only disrupted timelines but also threatens to further escalate costs. Originally approved at Rs.37,230 crore in 2013, the project cost has already ballooned to Rs.79,459 crore over 13 years. Officials now warn that delays and repair costs could push the figure even higher. The refinery was projected to generate annual revenues of around Rs.50,000 crore, making any delay financially significant. An official linked to refinery operations noted that the economic implications are substantial, adding that the project has already seen cost overruns and the latest incident will further increase financial pressure. Beyond financial setbacks, the incident has deeply impacted local sentiment in the Barmer-Pachpadra region, where the refinery was seen as a catalyst for employment and economic transformation. "We had pinned all our hopes on the refinery. It was supposed to bring jobs and change our lives, but now everything seems uncertain," said Rameshwar Kharwal, a local. Another youth, Manthan Kumar, said the delay has hurt the dreams of thousands of families, while petrochemical engineer Deepak Kumar expressed concern over prolonged uncertainty in job opportunities. The ripple effects are expected to be felt across the local economy, including small businesses, transport operators, and ancillary industries that were gearing up for increased activity. In an official statement, Hindustan Petroleum Corporation Ltd confirmed that the fire was contained without any casualties or injuries. The blaze was largely confined to the heat exchanger stack, and critical units were isolated promptly to prevent further damage. The company stated that all affected structures have been declared safe and that the broader refinery complex remains unaffected. However, experts caution that even localised damage in such high-value systems can significantly delay commissioning timelines. The incident has also raised serious concerns about safety protocols and system reliability during trial operations at large-scale industrial projects....