The government has issued the Brownfield Refinery Policy, paving the way for refinery upgrade projects worth around $5 billion.
Under the new policy, refineries must sign upgrade agreements with the government by October 1 to proceed with planned modernization projects.
Refineries that fail to meet the first deadline will face a further reduction in the deemed duty on high-speed diesel. The policy sets a second deadline of November 15, after which the deemed duty will be completely withdrawn if upgrade agreements remain unsigned.
The policy also requires refineries to maintain adequate crude oil stocks to strengthen fuel supply security. Refineries must maintain imported crude oil stocks sufficient for 20 days.
They are also required to maintain a 15-day stock of locally produced crude oil.
The government has introduced these measures to ensure that refinery modernization projects are completed within the agreed timelines while improving fuel supply security and reducing risks associated with supply disruptions.
The Brownfield Refinery Policy is expected to encourage existing refineries to invest in modernization and upgrade their facilities to meet future fuel demand and improve operational efficiency.
