India's dependence on oil imports to grow 85% by 2012

Armen Hareyan's picture

India's dependency on oil imports is likely increase to about 85 percent by 2012 from the current level of 70 percent, driven by the rising demand for energy, industry body Assocham has said.

This despite "refining capacity in India poised to increase by 58 percent to touch 235 million tonnes in the next five years... In view of the growing demand for energy with little resources at its disposal for harnessing alternative sources," the chamber said in a statement.

A chamber paper on 'future imperatives of crude oil scenario' shows that India's dependence on crude oil import would rise, as domestic discoveries have not been taking place, to touch the level of 12-13 percent compared to 7-8 percent at present.

Even in case of the alternative sources of energy, which is available in abundance in India, their harnessing is again becoming a problem, the statement added.

It said even projects that are likely to be commissioned during 11th plan by companies such as reliance petroleum, Indian Oil Corporation, HPCL and BPCL would employ higher imports of crude oil, if domestic crude oil production continues to languish.

However, the chamber is of the view that the higher crude oil imports would not impact the trade deficit adversely as most of the addition in the new capacities are aimed at exporting value added products.

During financial year 2005, India exports of petroleum 96 percent, worth 11.5 billion dollar were says suicide attacks thwarted. - DDNEWS

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