New Delhi: Public sector oil marketing companies (OMCs) have plans to invest Rs 2 lakh crore on expanding India's oil refining capacity by around 20 percent by 2025, said Minister of State (MoS) for Petroleum and Natural Gas Rameswar Teli on Wednesday. In a written response to a question raised in the Rajya Sabha, the minister said, "The existing Refining capacity is 249 Million Metric Ton Per Annum (MMTPA) and is expected to reach 298 MMTPA by 2025. The total capital expenditure of (Rs) 2 Lakh Crore is envisaged by the Public Sector Oil Companies for capacity expansion up to 2025."
"The refining industry has been modernised and upgraded continuously with the indigenous and imported technologies for refining cost reduction and product upgradation," said the minister.
Presently, India's oil refining capacity exceeds the consumption of petroleum products and the surplus product is exported, said the minister. Domestic consumption was 194 MMTPA (provisional) and production capacity was 249 MMTPA in FY 2020-21, said Teli. According to the International Energy Agency (IEA), India will drive the global rise in energy demand over the next two decades as it will account for 25 percent of the growth.
The expansion in refining capacity is expected to come from both brownfield and greenfield projects.
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