Bharat Petroleum Corporation Limited (BPCL) has initiated discussions with the Andhra Pradesh government to acquire approximately 6,000 acres of land for the development of a refinery and petrochemicals complex along the state’s coastline.
The project is expected to contribute significantly to the region’s industrial growth. BPCL is in the final stages of land identification, and the acquisition process is set to begin soon.
Vetsa Ramakrishna Gupta, BPCL’s Director of Finance said, “We have almost identified the land and approached the Andhra Pradesh government for acquisition. The process will start soon”.
Pre-Project Activities and Timeline
BPCL has allocated ₹6,100 crore for pre-project activities, including land acquisition and development.
The company is focusing on conducting field studies and preparing detailed project reports (DPRs), a process expected to take six to nine months.
BPCL aims to finalize the project details and reach the final investment decision (FID) by December 2025.
Gupta added, “By December 2025, we expect to finalize the project numbers and reach the final investment decision (FID) stage”.
Refinery Capacity and Investment Plans
BPCL is considering two potential refinery configurations, with capacities of 9 million tons (mt) and 10 mt, integrated with significant petrochemical production.
For a 9 mt refinery, BPCL anticipates producing around 3.8-4 mt of petrochemicals, with the remainder allocated for petroleum products.
The total capital expenditure for the project is estimated at ₹95,000 crore.
In addition, the Andhra Pradesh government has offered substantial capital subsidies, further enhancing the project’s financial viability.
BPCL is also in discussions to secure a joint venture partner for the refinery complex.
Project Timeline and Alignment with Other Refineries
BPCL expects the refinery-cum-petrochemicals complex to be commissioned within 48 months after the final investment decision is made.
The company plans to synchronize this project’s timeline with the ongoing expansion of its Bina refinery to ensure seamless integration.
Crude Supply and Procurement Challenges
On the procurement front, Gupta discussed the challenges BPCL faces in securing crude oil.
Due to U.S. sanctions, BPCL’s shipments from Russia are expected to decrease by 20% in March 2025.
While Russian supplies accounted for 31% of the company’s Q3 FY25 cargoes, BPCL is sourcing adequate crude from West Asia and the U.S. to maintain stable operations.
Strategic Impact on India’s Energy Infrastructure
The establishment of BPCL’s refinery-cum-petrochemicals complex in Andhra Pradesh represents a critical step in strengthening India’s energy infrastructure.
As reported by newsonprojects.com, the project will not only meet domestic demand but also support the country’s broader industrial growth, positioning BPCL as a key player in India’s energy sector.
