PM Modi says India will raise refining capacities to 400 MT from 250 MT now

Prime Minister Narendra Modi today said that the government has planned to raise India’s refining capacities from about 250 MT to 400 MT per annum by 2025. Narendra Modi added that increasing domestic gas production has been a key government priority as it has planned to achieve ‘One Nation One Gas Grid’ and shift towards a gas-based economy. Speaking at India Energy Forum, PM Modi further said this year has been challenging for the energy sector as the demand fell by almost one third and there has been price instability. However, despite the projections of a contraction in global energy demand over the next few years as well, India has been projected to emerge as a leading energy consumer and double its energy consumption over the long term, he underlined. 

Highlighting the work done in the areas of energy, the Prime Minister said that India’s reform journey has been on high speed and the energy sector has seen many path-breaking reforms. He added that the reforms in Exploration and Licensing Policy were put in place in February 2019 and the focus has shifted from ‘revenue’ to ‘production maximisation’.

PM Modi stated that the government is driving strategic and comprehensive energy engagements with the key global energy players. Speaking about partnering with neighbouring countries, he further said that India is developing energy corridors with neighbouring countries for mutual benefit under India’s Neighbourhood First Policy.

Narendra Modi further showed concern about fluctuating crude oil prices and said that we need to move towards responsible pricing and have to work towards transparent and flexible markets for both oil and gas. In an effort to increase domestic production of natural gas and to bring uniformity in the market price discovery of gas, the government, earlier this month, had announced Natural Gas Marketing Reforms. PM Modi today assured that these reforms will give greater marketing freedom in the sale of natural gas through e-bidding. It is to be noted that India’s first automated national-level gas trading platform was launched in June this year.