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The Andhra Pradesh government has approved the allocation of 6,000 acres near Ramayyapatnam Port in Nellore district to BPCL for establishing a 9-12 MMTPA greenfield refinery cum petrochemical complex. The project, with an estimated investment of around INR 1 lakh crore, will receive significant state incentives, including capital subsidies, GST refunds, and stamp duty waivers. BPCL plans phased investments over several years, with employment opportunities during construction and operational stages. The refinery's total power requirement is projected at 600 MW, combining in-house generation and state grid supply.
The Andhra Pradesh government has issued orders to allot 6,000 acres of land near Ramayyapatnam Port in Nellore district to Bharat Petroleum Corporation Limited. The land is being provided on a cost basis to support BPCL's plan to establish a 9-12 MMTPA greenfield refinery cum petrochemical complex, with a total investment estimated at around INR 1 lakh crore. Advertisement
The state has granted in-principle approval for financial incentives under a tailor-made package. These incentives may cover up to 75 per cent of BPCL's capital expenditure over 20 years from the start of the project. The investment will be phased, with INR 4,843 crore planned for the current financial year, INR 9,686 crore next year, INR 14,529 crore in 2027-28, INR 29,059 crore in 2028-29, and INR 38,745 crore in 2029-30, totaling INR 96,862 crore.
The project will benefit from multiple support measures, including a capital subsidy of 43.5 per cent disbursed in 15 instalments, full GST refund during operations, reimbursement of SGST (including ineligible amounts) and state shares in IGST/CGST during construction, along with complete waiver of stamp duty and registration fees.
The government has instructed BPCL to complete all project phases and commence commercial operations by January 2029. Given the scale of the project, progress will be monitored regularly by a High-Level Committee comprising representatives from all relevant departments.
BPCL has requested permission from the Ministry of Environment, Forest and Climate Change to prepare the Terms of Reference for the 9 MMTPA project, estimating its cost at INR 1.03 lakh crore with a 42-month completion timeline. Employment during construction is expected to reach 3,400, including 400 permanent and 3,000 temporary positions. Once operational, the project is projected to generate 3,750 jobs, with 1,250 permanent and 2,500 temporary roles.
The ministry's Expert Appraisal Committee has asked BPCL to conduct a public hearing and prepare a report that includes proceedings, attendance sheets, an action plan addressing concerns, budget allocation, and timelines.
The proposed refinery cum petrochemical complex will require a total power supply of 600 MW. Out of this, 100 MW will be generated via an in-house captive power plant, while the remaining 500 MW will be supplied through the state grid.
Source PTI
5th Jun, 2025
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