The Hindu Business Line : `Refining capacity to touch 210 mt by 2012'

Export plans
Though the country depends on imports for 71 per cent of its crude oil demand, its increasing refining capacity has helped it take advantage of global demand for petroleum products.

New Delhi , March 24

The petroleum refining capacity of the country is expected to touch 210 million tonnes by 2012.

In a presentation at the sixth Indian Oil and Gas Conference, Mr Prabh Das, Joint Secretary in the Petroleum Ministry, said: "Our plan is to beat gems and jewellery as the highest group in the export basket of the country. Petroleum products are currently the second highest exported commodity, with the value of exports expected to touch $10 billion in 2005-06 from $6.8 billion last year."

The conference was organised by The Energy and Resources Institute.

Mr Das added: "India has become a net petroleum products exporter, exporting a range of products from diesel, petrol to naphtha and other products."

Though the country depends on imports for 71 per cent of its crude oil demand, its increasing refining capacity has helped it take advantage of global demand for petroleum products.

The refining capacity has reached 132 million tonnes this year, up from 124 million tonnes in April 2005. With 98 per cent capacity utilisation, of the total refinery products only 111 million tonnes is consumed within the country while the rest is exported.

Additional capacities are being created by a number of State-owned and private companies, including Reliance, which is adding 27 million tonnes capacity to its current 33-million-tonnes refinery.

Speaking on the sidelines, Mr Ashok Sinha, Chairman and Managing Director of BPCL, said that its long-delayed six-million-tonne Bina refinery was finally on track for completion by December 2009.

"We have sufficient funds to go it alone for the time being and are not yet ready for joint venture."