PM Modi Unveils Rajasthan Refinery, Cites Energy Resilience Amid Global Supply Crisis

Prime Minister Narendra Modi inaugurated, dedicated and laid the foundation stone for development projects worth around INR 1.06 lakh crore in Rajasthan, including the Rajasthan Refinery at Balotra, describing the project as a major step towards strengthening India's energy security, industrial growth and employment generation.

Addressing a public gathering, Modi said that the refinery would generate employment for thousands of people while enhancing India's refining capacity. He said that the project reflects the country's commitment to self-reliance and would support long-term economic development.

Highlighting India's response to what he described as the "biggest energy crisis of the 21st century" arising from the conflict in West Asia, Modi said that the government adopted timely policy measures, effectively utilised domestic resources and leveraged diplomatic outreach to maintain uninterrupted energy supplies despite global disruptions.

He said that India was particularly exposed to the crisis as around 60 percent of its LPG requirement was met through imports, with nearly 90 percent sourced from the Gulf region. To strengthen supply security, the government expanded its crude oil sourcing network from around 25-26 countries to more than 40 countries.

Modi said that domestic refineries were rapidly reconfigured to divert gas for LPG production, including modifying facilities that had not previously produced LPG. As a result, national LPG output increased from around 35,000 metric tonnes to 54,000 metric tonnes within a week. The government also accelerated the rollout of piped natural gas (PNG) connections, adding more than 11 lakh households to reduce dependence on LPG cylinders.

He said that these measures helped India avoid the fuel shortages and rationing witnessed in several countries while ensuring uninterrupted domestic supplies. Despite market estimates that LPG cylinder prices could rise to nearly INR 2,000, the government kept domestic prices below INR 950, while Ujjwala beneficiaries continued to receive subsidised cylinders for less than INR 650. Commercial LPG prices were also reduced.

The Prime Minister said that international crude oil prices rose from around USD 70 to USD 120 per barrel during the crisis, forcing several countries to ration petrol and diesel. He said that the government absorbed losses exceeding INR 75,000 crore between April and June to shield consumers from rising fuel costs and reduced excise duty on petrol and diesel by INR 10 per litre to ease the burden on consumers while ensuring uninterrupted fuel availability across the country.

Highlighting the strategic significance of the Rajasthan Refinery, Modi said that India has become the world's fourth-largest refining nation at a time when no new refinery has been built in the United States for nearly five decades and refining capacity is shrinking in parts of Europe. He said that the government would continue expanding the country's refining infrastructure to strengthen long-term energy security.

The Prime Minister also outlined measures taken to address fertiliser supply disruptions following the Ukraine conflict, including securing alternative import routes, providing subsidies to keep urea affordable, promoting natural farming and curbing hoarding and black marketing. He added that the government expanded the Emergency Credit Line Guarantee Scheme (ECLGS), enabling eligible MSMEs to access additional government-backed loans to offset rising operational costs during the energy crisis.

Apart from energy projects, Modi inaugurated the new airport terminal in Jodhpur and laid the foundation stone for Jaipur Metro Phase-II, saying the projects would improve connectivity, tourism and employment across Rajasthan.

He also announced that Rajasthan and Haryana have signed a INR 34,000-crore agreement to supply water to the Shekhawati region through an underground pipeline from the Hathnikund Barrage, benefiting Sikar, Churu, Jhunjhunu and adjoining areas.

The Prime Minister highlighted Rajasthan's expanding renewable energy capacity, citing the development of large solar parks, installation of more than 1.5 lakh rooftop solar systems under the PM Surya Ghar scheme and distribution of over 65,000 solar pumps to farmers under the PM-KUSUM programme.

Modi said that the investments in energy, transport, water infrastructure and urban connectivity would strengthen Rajasthan's infrastructure, accelerate economic growth and improve ease of living.