With India’s demand for petroleum products poised to grow at more than 3% annually and the country expected to see average annual GDP growth of 8-8.5% over the next several years, the oil ministry has decided to roll out a road map for development of the sector’s infrastructure. This will include decadal plans to meet demand till 2050.
This would be for the first time, petroleum minister Dharmendra Pradhan said, that his ministry has proposed a “long-term strategy similar to developed nations” to create infrastructure related to transportation, marketing and production of petroleum products to be able to adequately meet demand till 2050.
Pradhan told FE that after a recent review of the current infrastructure, such as pipelines, in-land waterways, movement via road and railways, among others, his ministry would prepare a ‘Vision Document 2050’, where it would strategise the demand for petroleum products and infrastructure in the country for the next three decades. One of the focus araeas would be to cut costs, he added.
The review was attended by government-owned oil marketing companies: IOC, BPCL and HPCL. Private players, such as Mukesh Ambani-promoted Reliance Industries and Ruias-owned Essar Oil, would also be roped in to chart out the road map. A global consultant would be appointed by the government to prepare the vision document.
“Currently, we have 46 points for offtake of products. We would have to see how much more would be required by 2030, 2040 and 2050. We should use more inland waterways for transportation of fuel, which would also help reduce cost. We would have to take a holistic approach and all these would finally help us in achieving energy security,” explained Pradhan.
India, the fourth-largest energy consumer in the world after the US, China and Russia and accounting for 4.4% of global energy consumption, would see highest oil demand between 2013 and 2040, said International Energy Agency’s World Energy Outlook 2014. The country is expected to see its demand for petroleum products grow at a compounded annual growth rate of 3.5%.
Moreover, with a positive outlook from the government’s end to ramp up investment in infrastructure, including roads and railways, sales of both passenger and utility vehicles are expected to grow at 6-8% in the current fiscal.