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This is a 2003 VW Touran 1.9 L TDI.

Basically I was starting to accelerate in 2nd gear when something popped in engine compartment and it lost power. Whenever I press on gas pedal in 1st gear, it just sucks air very loudly and keeps retching, lacking power. The only way to accelerate is by not pressing gas pedal and letting it accelerate on its own idle speeds, but as soon as acceleration pedal is pressed, it just keeps retching and doesn't really accelerate.

What might be the problem?

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Sounds like you have blown off or split a turbo hose between the turbocharger outlet and the engine inlet manifold, these pipes go all the way to the intercooler at the front of the engine compartment.

All the hoses will need checking for splits, or given the age, for blown off joints due to corroded hose clips. This is a common problem with the older car as as the clips corrode the clamping force weakens and the turbo boost pressure stays about the same...

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