CM Naidu Asks BPCL To Expedite ₹1.45 Lakh Cr Refinery, Petrochemical Project In Andhra

Andhra Pradesh Chief Minister N Chandrababu Naidu on Wednesday asked BPCL to expedite the commencement of work on its ₹1.45 lakh crore greenfield refinery-cum-petrochemical project near Ramayapatnam Port.

During a meeting with BPCL chairman and managing director (CMD) Sanjay Khanna and other officials, the Chief Minister proposed setting up a downstream petrochemical park in the vicinity of the refinery, said an official release.

“Naidu directed Bharat Petroleum Corporation Limited (BPCL) to expedite the commencement of works on its greenfield refinery-cum-petrochemical project near Ramayapatnam Port,” it said.

Khanna informed the CM that the project, coming up between Prakasam and Nellore districts, is estimated to cost around ₹1.45 lakh crore.

According to him, an integrated greenfield refinery with a capacity of nine million tonnes per annum is being planned and the project is expected to receive final environmental clearance by the end of September.

“The final investment cost is likely to be finalised in October after the study report being prepared by Engineers India Limited (EIL) is received. Construction works on the refinery will commence thereafter." The refinery is expected to produce Euro-6 standard fuels, including motor spirit, high-speed diesel and aviation turbine fuel (ATF) with a combined production capacity of around 5.4 million tonnes.

Other petrochemical products are expected to account for around 3.2 million tonnes, including generating downstream products and by-products such as HDPE, LDPE, LLDPE, polypropylene and polyvinyl chloride (PVC), said the press release.

The Chief Minister said 75% of the 6,000 acres of land required for the refinery has already been handed over, and assured that the remaining land would be handed over by the second week of October.

Naidu suggested that BPCL and Andhra Pradesh Industrial Infrastructure Corporation (APIIC) jointly prepare a plan for establishing a downstream petrochemical park over approximately 1,500 acres near the refinery.

According to Naidu, demand for petrochemicals is changing rapidly with increasing urbanisation and the expansion of the manufacturing sector in India.

With the country's petrochemical intensity index currently around five% and expected to rise to 15–20% over the next decade, he said the refinery should be cognizant of future requirements.

Further, the TDP supremo suggested that modern refineries not just focus on converting crude oil into fuels but also on increasing the production of chemical feedstocks such as ethylene and propylene.

India's chemical and petrochemical sector is expected to reach $1 trillion by 2040 and BPCL would work towards meeting the country's future requirements, added Khanna.