**BPCL’s Ambitious Refinery Expansion in Andhra Pradesh**
Bharat Petroleum Corporation Ltd (BPCL) is set to significantly enhance its refining capacity with the establishment of a new greenfield refinery and petrochemical complex in Andhra Pradesh. According to G. Krishnakumar, the chairman and managing director, the company’s total refining capacity is expected to reach approximately 50 million tonnes (mt) upon completion of this project, which will add an annual refining capacity of nine million tonnes.
This initiative aligns with India’s goal of becoming a global petrochemical hub, as the government aims to position the country to meet increasing global petrochemical demand. BPCL is also actively expanding its existing refineries in Bina, Madhya Pradesh, and Kochi, Kerala.
Currently, India’s refining capacity stands at 250 mt per annum, with BPCL contributing 35 mt. The Andhra Pradesh state cabinet recently approved BPCL’s proposal to establish a petroleum refinery in Ramayapatnam, Nellore district. Krishnakumar noted that the total capacity could rise to between 50 and 52 mt following the completion of the Andhra Pradesh project.
The company anticipates finalizing its investment decision (FID) by the end of 2025, following essential pre-project activities such as feasibility studies, environmental assessments, and land acquisition. In December, BPCL’s board approved the initiation of these pre-project activities, which are projected to cost around ₹6,100 crore. While the exact investment amount is still under consideration, estimates suggest that this could become India’s most expensive refinery project, with costs ranging from ₹95,000 to ₹97,000 crore.
K. Parthasarathy, Andhra Pradesh’s information and public relations minister, confirmed that the refinery will be established with an investment of ₹96,862 crore. Vetsa Rama Krishna Gupta, BPCL’s director of finance, indicated that while the FID is expected by late 2025, current projections estimate the investment at around ₹95,000 crore. He added that it may take an additional nine months to a year to reach the FID stage, at which point clearer capital expenditure figures will be available.
The expansion of BPCL’s refining capacity is poised to meet the strong demand for petrochemical products in the coming years.
