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

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

This despite “refining capacity in India poised to increase by 58 per cent 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 per cent compared to 7-8 per cent 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.

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