OCTOBER 20248INDIA TO PROMOTE CRUDE OIL REFINING CAPACITY BY 35-40 MT BY FISCAL 2030CIVIL AVIATION MINISTRY SEEKING TO IMPROVE AIRPORT ACCESSIBILITYIndia's oil marketing companies (OMCs) will raise the nation's crude oil refining capacity by 35-40 million tonnes (MT) by fiscal 2030, as per Crisil Ratings. By 2030, the rating agency forecasts that the country's total installed crude refining capacity will reach 295 MT.The growth in domestic oil consumption in India will drive this expansion, as the current refining capacity is Union Civil Aviation Minister Kinjarapu Rammohan Naidu announced plans to increase the number of airports in India to 350 by the year 2047 as part of India's goal to become a 'Viksit Bharat' (developed already operating at 100-103 per cent utilization levels.As per the rating agency, most of the expansion's capital expenditure will fall between Rs 1.9-2.2 lakh crore, with a focus on brownfield expansions for capacity additions. It also stated that these investments are predicted to have minimal project risk, and consistent profits from the refining industry will enhance the credit ratings of OMCs.In the last ten years, India's capacity has grown by 42 million tons, reaching 257 million tons in the fiscal year 2024. This was mainly due to the increasing need within the country, as exports stayed constant at 60-65 million tons annually throughout this time. Over the last ten years, there was a 4 percent compound annual growth rate (CAGR) in the use of petroleum products within the country.Anuj Sethi, Senior Director, CRISIL Ratings, said, "We expect overall petroleum product consumption to slightly moderate and register 3 percent CAGR over the next six years, primarily due to slower growth of 2-3 percent in transport fuel consumption. This will be caused by improving fuel economy, rising share of vehicle sales with alternative cleaner fuels, and 20 percent ethanol blending target proposed by the Government of India". nation). Speaking at an event marking World Tourism Day at Vigyan Bhawan, he highlighted the ministry's efforts to boost tourism by improving domestic air connectivity and focusing on hinterland locations near unexplored sites.Naidu stressed the importance of enhancing airport facilities to welcome foreign tourists, describing airports as "gateways to a country." He emphasized the government's goal of increasing the number of airports from the current 157 to 350 within the next 20-25 years.The event also saw Union Tourism Minister Gajendra Singh Shekhawat announce that under the 'Chalo India' campaign, one lakh foreign tourists would soon be exempted from paying visa fees. Naidu noted that India had seen a significant rise in air traffic, with 4.6 crore travelers landing in 2014, increasing to almost 7 crore today, thanks in part to the growth in airports.Naidu praised the UDAAN scheme, which has made air travel more accessible to the common man, and expressed the ministry's intent to connect previously "unserved" and "underserved" airports located near beautiful landscapes. He also mentioned plans to improve seaplane and helicopter connectivity, aligning closely with the tourism sector's goals. TOP STORIES
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