India’s state-run oil companies are advancing plans to establish new refineries and expand existing ones to meet the country’s increasing energy needs driven by strong economic growth.

In response to rising energy demands, the Indian government is actively supporting the expansion of refining capacity and the commissioning of new refineries. Bharat Petroleum Corporation Limited (BPCL) is preparing to build a new 12 MMTPA (million metric tonnes per annum) refinery, projected to cost Rs 50,000 crore. The company is currently assessing potential locations, with Andhra Pradesh and Uttar Pradesh being the leading candidates.

Additionally, media reports indicate that ONGC, India’s largest oil explorer, is also planning a new refinery and petrochemical project in collaboration with BPCL. ONGC aims to establish a nine MMTPA refinery at an estimated cost of Rs 70,000 crore.

In 2023, Hindustan Petroleum Corporation Limited (HPCL) announced its own refinery project in Barmer, Rajasthan. The new facility will have a capacity of nine MMTPA and is expected to begin operations in January 2025.

The development of these new refineries underscores India's ongoing reliance on hydrocarbons, despite advancements in green energy technologies such as solar, wind, and green hydrogen. The country continues to depend heavily on oil to fulfill a significant portion of its energy requirements.