UAE and Saudi Arabia Keen on Investing in India's Refining Sector

India's oil minister Hardeep Singh Puri announced on Thursday that the United Arab Emirates and Saudi Arabia are interested in investing in India's refining sector. The Gulf states' interest is driven by the potential for future growth in the downstream market, according to Puri.

The Indian government aims to expand its refining capacity to 6.2-6.4 million barrels per day from the current 5.4 million bpd by building new plants and upgrading existing units. This expansion will require significant investment, with the cost of building a refinery estimated at between 780 billion to 800 billion rupees ($8.13-$8.34 billion).

Puri stated that 'nobody wants to come and invest in a refinery unless they can also get a slice of your growing downstream market.' The minister's comments reflect the government's efforts to attract foreign investment in the refining sector.