India’s Refining Capacity going to Double within Coming 10 Years
While renewable energy is being promoted on one side in the country, crude oil refining capabilities are also being enhanced. India is rapidly increasing crude oil refining capacity to meet the demand for petroleum products. Petroleum and Natural Gas Minister Dharmendra Pradhan says that "by 2030 India's refining capacity will be 45 to 500 million tons annually". Pradhan has claimed that construction of a 60 million tonne annual refinery at Ratnagiri in Maharashtra will also begin soon. The country currently has 24.9 million tonnes of refining capacity annually, while the consumption of petroleum products in the country was 21.37 million tonnes in the last financial year.
Demand for petroleum products in the country is expected to reach 335 million tonnes annually in 2030 and 47.2 million tonnes in 2040. The country needs to increase refining capacity to meet this growing demand.
Brownfield and Greenfield Projects
Pradhan says that brownfield and greenfield projects will be resorted to increase the refining capacity in the country. That is, the capacity of existing refineries will be expanded and new refineries will also be set up as well. Saudi Aramco of Saudi Arabia and ADNOC of UAE have invested to set up a new refinery in Ratnagiri. They both hold 50 per cent stake in it, while half of the stake is owned by Indian state oil companies Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited.
Need to face many ups and Downs
But there is a difference between claims and reality. Delay in projects is common in the country. Due to various reasons, projects are hanging for years, due to which their cost also increases manifold. Experts say the refining projects of state-run oil companies have been delayed for several reasons. These include land acquisition and delay in getting environmental clearance. IOCL's Paradip refinery was to start production in 2012 but it was commissioned in 2015. It also faced problems in land acquisition and environmental clearance, due to which it was delayed.
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