Focus on smaller refineries to overcome land acquisition challenges

01 Jun 2023 CW Team

Puri emphasised that expanding the country's refinery capacity to 450 MMTPA remains a priority, and specific policy decisions will follow suit. He stressed the importance of avoiding overly large refineries, as they often encounter complications related to land acquisition and other issues. The minister's remarks are particularly relevant considering the obstacles faced by projects like the West Coast mega refinery, which has experienced delays due to land acquisition hurdles, environmental clearances, and funding issues. Initially announced in 2015, the $44 billion project in Maharashtra's Ratnagiri district aimed to achieve a record-breaking refinery capacity of 60 MMTPA. However, conflicts between the previous Maharashtra government controlled by the Shiv Sena party and the BJP-led Centre resulted in significant delays for the mega project.

Additionally, the Rajasthan Refinery Project (RRP), India's largest upcoming integrated refinery and petrochemical complex, has also fallen behind schedule since its announcement in 2013. To address these challenges, the government is in the process of forming a core team that will tackle the hurdles, revive discussions, and engage multiple stakeholders in meaningful dialogues. This team will consist of officials from the ministry, oil marketing companies (OMCs), and other relevant parties.

India's current refining capacity stands at approximately 250 MMTPA, equivalent to about 5 million barrels per day (bpd). However, with projected fuel demand expected to double to 10 million bpd by 2050, the need to expand refinery infrastructure becomes crucial.

Hardeep Singh Puri, the Minister for Petroleum and Natural Gas, addressed the attendees of the energy summit organised by the Indo-American Chamber of Commerce-North India Council (IACC- NIC), highlighting the government's shift towards setting up relatively smaller oil refineries with capacities of approximately 20 MMTPA. This approach aims to overcome the challenges associated with land acquisition, which have plagued larger refinery projects. Puri emphasised that expanding the country's refinery capacity to 450 MMTPA remains a priority, and specific policy decisions will follow suit. He stressed the importance of avoiding overly large refineries, as they often encounter complications related to land acquisition and other issues. The minister's remarks are particularly relevant considering the obstacles faced by projects like the West Coast mega refinery, which has experienced delays due to land acquisition hurdles, environmental clearances, and funding issues. Initially announced in 2015, the $44 billion project in Maharashtra's Ratnagiri district aimed to achieve a record-breaking refinery capacity of 60 MMTPA. However, conflicts between the previous Maharashtra government controlled by the Shiv Sena party and the BJP-led Centre resulted in significant delays for the mega project. Additionally, the Rajasthan Refinery Project (RRP), India's largest upcoming integrated refinery and petrochemical complex, has also fallen behind schedule since its announcement in 2013. To address these challenges, the government is in the process of forming a core team that will tackle the hurdles, revive discussions, and engage multiple stakeholders in meaningful dialogues. This team will consist of officials from the ministry, oil marketing companies (OMCs), and other relevant parties. India's current refining capacity stands at approximately 250 MMTPA, equivalent to about 5 million barrels per day (bpd). However, with projected fuel demand expected to double to 10 million bpd by 2050, the need to expand refinery infrastructure becomes crucial.

Infrastructure Energy

17 Dec 2025

Vedanta Aluminium Uses 1.57 bn Units of Green Energy in FY25

Vedanta Aluminium, India’s largest aluminium producer, recently reported consumption of 1.57 billion units of renewable energy in FY25, marking a significant milestone in its 2030 decarbonisation roadmap. The company also achieved an 8.96 per cent reduction in greenhouse gas (GHG) emissions intensity compared to FY21, reinforcing its leadership in India’s low-carbon manufacturing transition. During FY25, Vedanta Aluminium expanded its renewable energy portfolio through long-term power purchase agreements, strengthening its strategy to source nearly 1,500 MW of renewable power over the lon..

Real Estate

17 Dec 2025

Oberoi Group to Develop Luxury Resort at Makaibari Tea Estate

EIH Limited, the flagship company of The Oberoi Group, has announced the signing of a management agreement to develop an Oberoi luxury resort at the iconic Makaibari Tea Estate in Darjeeling. The project marks a key milestone in the Group’s long-term strategy of creating distinctive hospitality experiences in rare and environmentally significant locations. Established in 1859, Makaibari is one of the world’s oldest tea estates and is globally recognised for its Himalayan landscape, primary forests and exceptional biodiversity. Spread across 1,236 acres, the estate houses one of the world�..

Real Estate

17 Dec 2025

GHV Infra Secures Rs 1.09 Bn EPC Order in Jamshedpur

GHV Infra Projects Ltd, a fast-growing EPC company in India’s infrastructure and construction sector, has recently secured a Rs 1.09 billion work order in Jamshedpur, Jharkhand. Awarded by a reputed group entity, the contract covers end-to-end civil construction, mechanical, electrical and plumbing (MEP) systems, along with high-quality finishing works for a large building development. The project will be executed over a 30-month period, with defined benchmarks for quality, safety and timely delivery. The order strengthens GHV Infra’s footprint in Jamshedpur, a key industrial hub known fo..