India plans to invest a hefty amount of Rs 350 billion for setting up new refineries to become oil product export hub besides eyeing at opportunities to build refineries a Africa and Latin America.
Addressing the Parliamentary Consultative Committee meeting, Petroleum Minister Mani Shankar said oil product exports, which stood at Rs 283.72 billion in 2004-05, are expected to overtake gems. and Jewellery exports soon.
India, which presently has a refining capacity of 127.37 million tonnes per annum, hopes to add 26.33 mill ion tonnes capacity by 2007 through expansion of HPCL's Mumbai refinery by 2.4 million tonnes, HPCL's Vizag refinery by 0.83 milllon tonnes. BPCL' s Mumbai refinery by 5.1 million tonnes and IOC's Panipat refinery by 6 mil lion tonnes.
Besides, Essar Oil as setting up a new 12 mn tonnes refinery at Jamnagar in Gujarat Further, capacity additions are envisaged in XI Plan through setting up of new refineries at Paradip (9 million tonnes), Bhatinda (9 million tonnes) and Bina (6million tonnes) and expansion of Reliance Industries' Jamnagar refinery by 27 million tonnes, IOC's Panipat refinery by further 3 million tonnes and Kochi refinery by 2 mn tonnes.
Aiyar said estimated consumption of petroleum products in 2006-07 is about 120.4 million tonnes as against refining capacity of 153.7 million tonnes. By the end of XI plan, refinery capacity would rise to 210 million tonnes and demand of oil products would reach at least 144 million tonnes and the surplus capacity would be used for export purposes.
Besides Ps 350 billion investment in new refineries by public sector oil firms, Rs 107.63 billion would be spent in expansions and modernisation. Aiyar said.
A massive Rs 144 billion would be spent in fuel quality upgradation and another Rs 110.46 tail lion an petrochemical units by 2010.
Additional ly, Rs 26 billion would be spent on c rude handling and new product facilities. Already, refiners have spent Rs 100 billion in producing Euro-I grade petrol and diesel and Rs 250 billion in making Euro-II/III grade fuels.
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