PM to Unveil Rs 1.5 Lakh-Cr Mega Bonanza for Petroleum Sector on March 2 

Prime Minister Narendra Modi is set to unveil a transformative bonanza for the petroleum sector in Bihar’s Begusarai on March 2. Featuring major projects, this mega bonanza is valued at a staggering Rs 1.5 lakh crore. The comprehensive initiative covers energy, fertilizers, infrastructure, and rail connectivity, collectively amounting to Rs 1.62 lakh crore. These projects are anticipated to boost economic growth and improve the quality of life for citizens.

Petroleum Sector Boost

Within the petroleum sector, PM Modi will inaugurate 29 projects and lay the foundation for 10 others, totaling Rs 89,000 crore and Rs 60,000 crore, respectively. This substantial investment aims to revolutionize the petroleum industry, fostering infrastructure advancements, boosting production capacities, and enhancing overall energy distribution efficiency.

Key Projects

1. KG Basin Project: PM Modi will dedicate the ‘First Oil’ from ONGC’s Krishna Godavari (KG) Basin project, a monumental endeavor set to significantly reduce India’s energy import dependency. With a project worth Rs 41,000 crore, it foresees a cumulative production of 14.24 MMT of oil and 30.50 BCM of gas.

2. Visakh Refinery Modernization Project (VRMP): Valued at Rs 26,264 crore, the HPCL-led project in Visakhapatnam aligns with the ‘Atmanirbhar Bharat’ initiative. With over 85% local content, it aims to generate employment while producing various refined products, including Propylene, LPG, Naptha, and more.

3. Mumbai High North Redevelopment Phase IV: ONGC’s project, costing Rs 3,977 crore, anticipates a cumulative production gain of 4.18 MMT and 0.51 BCM of gas by 2034-35, offering substantial livelihood opportunities.

4. Heera Re-development Phase-III Project: With an investment of Rs 2,495 crore, this project aims at a cumulative gain of 3.546 MMt oil and 5.82 BCM gas.

5. Nagayalanka Field Development: Costing Rs 285 crore, this ONGC project in Andhra Pradesh is set to triple oil production, significantly enhancing India’s energy security.

6. Barauni Refinery Expansion: Expected to be completed by the end of 2024, this Bihar project worth Rs 11,412 crore will augment Indian Oil’s Barauni Refinery capacity, creating export opportunities and marking a milestone for Bihar’s industrial landscape.

7. Panipat Refinery Capacity Expansion: IOCL’s project, targeted for completion by December 2025, will expand the Panipat Refinery capacity from 15 to 25 MMTPA, with an approved cost of Rs 38,231 crore.

8. Indian Institute of Petroleum and Energy (IIPE): With a significant investment of Rs 855 crore, this institute in Andhra Pradesh is a crucial step toward building a skilled workforce for the energy sector.

9. Poly Butadiene Rubber Plant: In Panipat, a Rs 2,103 crore project with a completion deadline of March 2025 aims to produce value-added products, contributing to innovation and sustainability.

10. Naphtha Cracker Expansion Project: Valued at Rs 1,636 crore, this Panipat refinery project aims to increase the production of essential petrochemicals domestically.

11. PX-PTA Expansion Project: Costing Rs 1,255 crore, this project aligns with the ‘Make in India’ initiative, contributing to increased production of essential petrochemicals.

12. Ethanol Plant Installation: PM Modi will inaugurate an ethanol plant based on LanzaTech Gas Fermentation Technology, worth Rs 754 crore, at Panipat Refinery and Petrochemical Complex.

OFB’s Insight on the Petroleum Project

The unveiling of these projects aligns with the government’s commitment to economic growth, self-sufficiency, and sustainable development. It is expected to transform the landscape of the petroleum sector in India. The mega bonanza for the petroleum sector underscores the government’s dedication to catalyzing growth, fostering innovation, and building a self-reliant economy.