Bharat Petroleum Corporation Limited, a PSU under the Union ministry of petroleum and natural gas, announced a large investment in Andhra Pradesh recently as it decided to go in for setting up a greenfield refinery and petrochemical complex there. The ₹95,000 crore project would be developed in phases. BPCL already has three refineries in India- Mumbai, Kochi and Bina (Madhya Pradesh). The board of directors sanctioned preliminary works for the Andhra Pradesh project by sanctioning an amount of ₹6,100 crores for preliminary works. The decision was conveyed in a letter to National Stock Exchange (NSE).
Pursuant to regulations of SEBI, BPCL initiated preliminary activities, such as feasibility study, environmental study, acquisition of land, and design engineering. All these are primary steps that will lay a foundation for setting up a refinery on the eastern coastline. The company will make sure that the beginning is smooth and systematic. Key tasks include preparation of a detailed project report (DPR) and front-end engineering design (FEED). BPCL has formally requested NSE to consider the project under Rule 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Andhra Pradesh has emerged as a preferred destination for significant investments under the current coalition government. Within six months of assuming office, the government has attracted major investors like ArcelorMittal, which pledged ₹1,61,198 crores, and Reliance, with ₹65,000 crores in the energy sector. Additionally, Tata Consultancy Services (TCS) has committed to establishing a center in Visakhapatnam.
BPCL has decided to invest in Andhra Pradesh after a fierce competition from Gujarat. The state government has managed to win the project after continuous engagement and discussion. The company officials have visited Moolapet, Machilipatnam, and Ramayapatnam multiple times before finalizing Ramayapatnam as the project location. The availability of sufficient land and proximity to the under-construction Ramayapatnam Port were the key factors for the selection.
BPCL has sought almost 5,000 acres of land for the project. Acquisition cost is estimated to be ₹1,500 crores. Of the total ₹6,100 crores sanctioned for preliminary activities, ₹4,600 crores would go for studies and engineering requirements. The construction activity will provide employment to nearly a lakh people, while it is expected to provide 5,000 permanent jobs for operational activities. An understanding between the state government and BPCL is likely in the near future.
As a Maharatna public sector undertaking, BPCL refines 96 varieties of oils supplied from six continents across about 40 million tonnes. The commissioning of this Ramayapatnam Refinery will increase the capacities in BPCL and also expand the country's operational footprint of BPCL at India.
