IGI Logo

In order to meet the growing energy demands of the country, Crisil Ratings has said that India’s oil marketing companies (OMCs) are expected to add 35-40 million tonnes (MT) of crude oil refining capacity by the end of the fiscal 2029-30. This will take the total installed capacity of the country for crude refining capacity to 295 MT by 2030.

This expansion will be driven by the projected growth in domestic oil consumption as India's existing refining capacity is already operating at optimal levels of 100-103 per cent utilisation. The expansion will require a capital expenditure of around Rs 1.9-2.2 lakh crore, with most of the capacity additions being brownfield expansions.

Further, it stated that these investments are expected to carry low project risk, and steady returns from the refining business will help strengthen the credit profiles of OMCs. Over the past decade, India has seen a capacity increase of 42 MT, reaching 257 MT in fiscal 2024. This was primarily in response to growing domestic demand, as exports remained steady at 60-65 MT per year during this period.