The expansion project aims to cater to the projected rising demand for fuel in central and northern India in the near future.
State-owned Bharat Petroleum Corporation Ltd (BPCL) on Friday said it has achieved financial closure for its Bina refinery expansion cum petrochemical project with the signing of a loan agreement of Rs 31,802 crore with a consortium of six lenders led by the State Bank of India.
The project, estimated to cost Rs 48,926 crore, aims to set up a petrochemical complex comprising a 1.2 million tonnes per annum (MTPA) ethylene cracker unit and increase the refinery's capacity from 7.8 MTPA to 11 million tonnes.
"This expansion will enable BPCL to produce downstream petrochemical products such as Linear Low-density Polyethylene (LLDPE), High-density Polyethylene (HDPE), Polypropylene (PP) and other aromatics, thereby reducing India's dependence on imports," the company said in a statement.
The expansion project aims to cater to the projected rising demand for fuel in central and northern India in the near future.
The project construction is expected to be completed within 48 months from the zero date.
The project in Bina, Madhya Pradesh, whose foundation stone was laid by Prime Minister Narendra Modi on September 15, 2023, will create employment in the region.
"During its construction phase, the project is expected to generate over 15,000 employment opportunities, while post-commissioning, it will create more than 1 lakh direct and indirect employment," it said.
"This will not only boost the local economy but also provide sustainable livelihood opportunities for the people in the region," it added.
The project aligns with India's broader strategy to boost industrial growth, infrastructure development, and increased industrial activity. Upon completion, it will mark a significant milestone towards attaining self-sufficiency in polymer products and enhancing the energy security of the nation.
"We are delighted to achieve financial closure for our Bina refinery expansion cum petrochemical project, which aligns with India's broader strategy to boost industrial growth, infrastructure development, and increased industrial activity," said G Krishnakumar, Chairman and Managing Director, BPCL.
"Upon completion, it will mark a significant milestone towards attaining Atma Nirbharata in petrochemical products and enhancing the energy security of the nation," he said.
SBI is partnering with BPCL in its endeavour to enhance India's energy security through the setting up of a world-scale petrochemicals complex and brownfield expansion of its refinery capacity at Bina, said Challa Sreenivasulu Setty, Chairman, SBI.
"The financial closure of this Rs 31,802 crore credit facility, with SBI as the lead bank is yet another example of how our partnership continues to be mutually beneficial for both the organisations and the nation at large. I look forward to many more successful partnerships with BPCL in the future," Setty said.