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.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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 Urban

06 Jul 2026

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Infrastructure Transport

06 Jul 2026

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Infrastructure Transport

06 Jul 2026

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..