Government Approves Brownfield Refining Policy for Modernisation

The government has finally approved the Brownfield Refining Policy after six years of deadlock. This policy aims to modernise the country's petroleum refineries, improve product quality, and increase production with an estimated investment of about $6bn.

The Brownfield Refining Policy provides stability clauses to protect investment, tax incentives, foreign exchange accounts for machinery import, and enhanced offshore and onshore storage capacity. The policy will upgrade existing oil refineries, modernise their operations, and improve financial viability.

The five existing refineries will improve product quality, quantity, and product mix through upgradation. As a result, total production of motor spirit (petrol) and high-speed diesel (HSD) will increase significantly, while furnace oil production will decline. The total petrol production would increase by 72pc to 18,400 tonnes per day (TPD), HSD output would rise by 39pc to 29,520 TPD, while furnace oil production would fall by 63pc.