Focus on smaller refineries to overcome land acquisition challenges
OIL & GAS

Focus on smaller refineries to overcome land acquisition challenges

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.

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.

Next Story
Real Estate

Johnson Controls Tops Data Centre Thermal Management Rankings

Johnson Controls, the global leader for smart, healthy and sustainable buildings, has been named a top thermal management provider for data centres by ABI Research. The recognition highlights Johnson Controls’ excellence in innovation and implementation, driven by its comprehensive product portfolio, global presence, and customer-centric approach to the data centre thermal management industry.“Johnson Controls has consistently exceeded market expectations for thermal management across all industries and is a leading player in mission-critical infrastructure, like data centres, where reliab..

Next Story
Infrastructure Urban

Kerala Budget Focuses on Infrastructure with Key Projects

Despite financial constraints, the final budget of the second Pinarayi Vijayan government prioritises infrastructure development with key initiatives such as the Vizhinjam-Kollam-Punalur Growth Triangle (VKP-GT), expansion along the West Coast Canal and Coastal Highway, the Wayanad tunnel project, and the transformation of Vizhinjam into a major Export-Import hub. The Vizhinjam-Kollam-Punalur Growth Triangle will receive Rs 10 billion from the Kerala Infrastructure Investment Fund Board (KIIFB) to enhance transport corridors and establish multi-modal hubs, manufacturing parks, logistics c..

Next Story
Real Estate

Odisha Approves 225,000 Houses Under Antyodaya Gruha Yojana

The Odisha Cabinet, chaired by Chief Minister Mohan Charan Majhi, has approved the allocation of 225,000 pucca houses for weaker sections under the Antyodaya Gruha Yojana over the next three years, with a budget outlay of Rs 75.5 billion. Under the scheme, eligible families who have not benefited from existing housing programs will receive Rs 120,000 million in financial assistance to construct a 25-square-meter pucca house. The government has clarified that asbestos, tin, and tile-roofed structures will not be considered pucca houses, while cement-roofed homes with concrete walls will qu..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?