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Bharat Petroleum Corporation Ltd (BPCL) and Oil India Ltd have announced plans to jointly set up a greenfield refinery and petrochemical complex in Andhra Pradesh with an investment of about USD 11.38 billion (INR 1 trillion). Oil India is considering a 10-20 % stake in the project, while BPCL is seeking additional partners. The facility will process 180,000-240,000 barrels of crude per day and include a 1.5 million-tonne ethylene cracker. The state government has allotted 6,000 acres of land and granted key approvals, with commercial operations expected by FY 2030.
Bharat Petroleum Corporation Ltd (BPCL) and Oil India Ltd are collaborating to build a large refinery and petrochemical complex in Andhra Pradesh at an estimated cost of about USD 11.38 billion (around INR 1 trillion). The project, which will be developed on 6,000 acres of land provided by the state government, has already received major statutory approvals and is currently in the pre-project stage. Advertisement
The proposed refinery is designed to handle between 180,000 and 240,000 barrels of crude oil per day. Alongside the refinery, the complex will also feature a 1.5 million-tonne ethylene cracker unit that will produce essential petrochemical feedstock used in plastics and other industrial materials. According to BPCL Chairman Sanjay Khanna, Oil India is looking to take a 10-20 % equity stake in the project, while BPCL is open to bringing in other partners to share investment and operational responsibilities.
The new complex is a major step toward strengthening India's refining and petrochemical capacity as the country continues to rely heavily on fossil fuels for its growing energy needs. It also reflects Oil India's strategic move beyond upstream exploration into downstream refining and petrochemical ventures. The company is already expanding its downstream operations through its subsidiary Numaligarh Refinery Ltd (NRL), which is raising its refining capacity in Assam from 60,000 to 180,000 barrels per day by 2027.
In addition to the refinery project, BPCL, Oil India, and NRL are jointly developing a 700-kilometre multi-product pipeline from Siliguri to Mughalsarai via Muzaffarpur. The pipeline will transport petrol, diesel, and jet fuel across eastern India. BPCL will hold a 50 % stake in the venture, with the remainder divided between Oil India and NRL.
BPCL has also entered a partnership with Fertilisers & Chemicals Travancore Ltd (FACT) to market organic fertilisers produced at its Kochi biogas plant in Kerala. This initiative aims to promote bio-energy utilisation and resource efficiency in BPCL's refining operations.
At present, BPCL operates three refineries across India with a combined capacity of 706,000 barrels per day, making it the country's second-largest state-owned refiner. The upcoming Andhra Pradesh project is expected to further strengthen BPCL's position in the energy value chain and enhance India's refining footprint in the southern region.
Source Reuters
5th Jun, 2025
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