According to Rameswar Teli, India's junior oil minister, state refiners plan to invest 2 trillion rupees ($26.96 billion) by 2025 to increase oil refining capacity by 20% in Asia's third-largest economy.

India, the world's third-largest importer and user of oil, has a refining capacity of around 249 million tonnes per year, or around 5 million barrels per day (bpd). In a written response, Teli stated that refining capacity is scheduled to increase to 298 million tonnes per year by 2025.

"For refining cost reduction and product upgrading, the refining sector has been continuously modernised and improved with indigenous and foreign technologies," he said.

Indian Oil Corp, the country's largest refiner, said in its latest annual report that it plans to increase its annual oil refining capacity from 70.05 million tonnes to 87.55 million tonnes by 2024/25 to satisfy rising demand for petroleum products.

India will be the main driver of rising demand for energy over the next two decades, accounting for 25% of global growth, and is set to overtake the European Union as the world's third-biggest energy consumer by 2030, the International Energy Agency said in a report earlier this year.

It is also nearly doubling its 3.2 million tonnes a year petrochemical capacity by adding another 3.1 million tonnes by 2024/25.