The new refinery-cum petrochemical complex is expected to have a crude oil processing capacity of 9 million tonnes per year. The refinery is likely to be commissioned in 48 months from the final investment decision.

Jan 24, 2025

State-owned Bharat Petroleum Corporation Limited (BPCL) has proposed an oil refinery-cum-petrochemical complex in Andhra Pradesh which is likely to cost around INR 95,000 crore, as per Director (Finance) Vetsa Ramakrishna Gupta. This will be one of India’s costliest refinery projects so far.

The BPCL board has approved an expenditure of INR 6,100 crore last month on pre-project activities such as land acquisition and commissioning of detailed project report (DPR) and certain feedstock studies.

‘‘Roughly the initial indication of capex requirement will be around INR 95,000 crore at gross level,” said Mr. Gupta at a news platform. He indicated that the Andhra Pradesh government has also provided a good amount of capital subsidy incentives. However, the fiscal support from the state government was not disclosed.  The refinery is likely to be commissioned in 48 months from the final investment decision (FID).

The coastal refinery and land have been identified for the complex. Comprising 6,000 acres of land, the refinery is expected to have a crude oil processing capacity of 9 million tonnes a year. This processing will produce 3-3.5 million tonnes of fuels like petrol and diesel and 3.8-4 million tonnes of feedstock of petrochemicals.

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The planned unit in Andhra Pradesh is being claimed as India’s last greenfield refinery project.