Working Group on Petroleum for Seventh Plan Report of the Subgroup on Demand Projections & Refining Capacity, July 1984

Abstract

The report from the Working Group on Petroleum outlines demand projections and refining capacity requirements for India’s Seventh (1983–90) and Eighth (1990–95) Five-Year Plans. It projects growth in petroleum demand, particularly middle distillates, while noting potential moderation due to rural electrification and reduced fossil fuel dependence. Refinery utilization targets are set at 90–95%, with new facilities expected to ramp up from 60% in the first year to 90% subsequently. Anticipated middle distillate deficits highlight the need for urgent grassroots and expansion projects, including refineries at Karnal and Mangalore, and debottlenecking existing plants. Long-term planning emphasizes early studies for future capacity expansion, along with secondary processing, pipelines, and lube production facilities. A total investment of Rs 6074 crores is projected under the Seventh Plan. The report recommends immediate project approvals, dedicated capacity planning, and technological modernization to ensure efficient fulfillment of petroleum demand.