AP clears 6,000 acre allocation for BPCL’s refinery project

Amaravati: The State government has approved allocation of 6,000 acres near Ramayapatnam Port in Nellore district for Bharat Petroleum Corporation Limited’s (BPCL) long-awaited Greenfield refinery and petrochemical complex, a landmark industrial project backed by an unprecedented incentive package covering up to 75 percent of total capital expenditure over twenty years.

India’s State-run energy major BPCL plans to invest Rs 96,862 crore in the refinery and petrochemical complex, one of its most ambitious downstream ventures. The facility will have an operational capacity of 9 to 12 million tonnes per annum, reinforcing India’s refining network and expanding its petrochemical footprint to meet rising domestic and export demand. Construction is scheduled to begin in 2025, with full-scale operations targeted by January 2029.

The project site spans 6,000 acres, including 3,352 acres for refinery facilities and 1,127 acres earmarked for a green belt. BPCL has completed pre-feasibility studies and aims to finalize its capital estimates with around 10 percent accuracy before the final investment decision.

Officials estimate that the refinery will generate gross State revenues of about Rs 87,558 crore over 15 years through taxes and related income, positioning it as one of Andhra Pradesh’s most lucrative industrial assets. The project is also expected to anchor a new industrial and petrochemical corridor along Ramayapatnam coast, spurring growth in logistics and allied sectors.

Under Andhra Pradesh Industrial Development Policy (2024–29), BPCL will receive tailor-made incentives, including long-term fiscal support to be disbursed through an escrow-based mechanism jointly supervised by Industries and Finance Departments. The State has also given in-principle approval for financial assistance equivalent to 75 percent of total investment, to be released in phases as project milestones are achieved.

To ensure progress, a high-level monitoring committee comprising senior officials from key departments will oversee implementation, investment targets, and employment generation.

BPCL’s investment aligns with India’s broader strategy to expand refining and petrochemical capacity amid rising fuel consumption and export opportunities. The project is expected to strengthen BPCL’s petrochemical portfolio and contribute to India’s long-term vision of becoming a global refining and petrochemical hub.

For Andhra Pradesh, Ramayapatnam project marks a defining industrial milestone. Chief Minister N Chandrababu Naidu has emphasised that large-scale infrastructure and energy investments are central to transforming the State into a leading industrial destination on India’s east coast. “This project positions Andhra Pradesh as one of the country’s foremost energy and petrochemical hubs,” a senior official from the Industries Department said. “It is not just an industrial venture but a long-term economic catalyst that will reshape the region’s development trajectory.”