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Despite EV push, India needs to expand refining capacity by 80% to meet fuel needs: Pradhan

“EV is a priority but the incremental requirement of fuel will have to be met through a combination of (ultra-clean) BS-VI grade petrol and diesel, CNG and biofuels alongside EVs,” he said at the Energy Horizon-2019 conference . 
The world’s third-largest energy consumer would need a combination of cleaner diesel and petrol, compressed natural gas (CNG), biofuels and electric vehicles (EVs) for meeting its transportation needs, he said. 

“Development of EV infrastructure and popularising through policy support would happen, at the same time a road map has to be provided in terms of the role of all other transportation solutions,” he said. 
While the country has sufficient capacity to refine crude oil and convert it into fuel such as petrol and diesel, it will need to raise it to meet the future requirement. 

“In India, we have a current domestic refining capacity of 250 million tonne per annum. Recent studies have pointed out that even with an aggressive EV rollout plan, India would need 450 million tonne of refining capacity (by 2040),” he said. 
“Unless we pay attention to this demand growth, in another few years, we will have to start importing refined products along with crude.” 

Also, anyone investing in the refinery would need reasonable assurance that there will be demand for the economic life of the investment, he said. 

Niti Aayog has reportedly proposed that after 2030, only electric vehicles should be sold in India. 

A panel headed by Niti Aayog CEO Amitabh Kant had earlier suggested that only EV (three-wheelers and two-wheelers) with an engine capacity of up to 150 cc should be sold from 2025 onwards. 
The government think-tank believes that a move to allow sale of only EVs from 2030 will expand the scope of the clean fuel technology beyond two and three-wheelers in the country. 

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