Andhra pips BJP-ruled UP, Gujarat to bag BPCL refinery project with investment potential of Rs 95,000 cr

Hyderabad: Andhra Pradesh has bagged a big-ticket investment from state-run Bharat Petroleum Corporation Ltd (BPCL), which will be setting up a greenfield oil refinery and petrochemical complex in the state. Notably, Andhra Pradesh pipped BJP-ruled states Uttar Pradesh and Gujarat to bag this mega project that may bring in approximately a whopping Rs 95,000 crore in investment over the years.

TDP, the ruling party in the state, is a key ally in the BJP-led NDA government at the Centre. BPCL's board on Tuesday approved the proposal to set up the refinery and petrochemical complex in Andhra Pradesh.

BPCL, in its filing with market regulator SEBI, said that the corporation's board has accorded its approval to commence pre-project activities for the setting up of a greenfield refinery-cum-petrochemical complex on the east coast in Andhra Pradesh at an estimated cost of Rs 6,100 crore.

The pre-project activities include various initial studies, land identification and acquisition, the preparation of a detailed feasibility report, an environmental impact assessment, a basic design engineering package, and front-end engineering design.

BPCL will need at least 4,000 to 5,000 acres of land to set up the refinery. The Andhra Pradesh government, according to sources, had offered them land near the port that is coming up in Ramayapatnam in Nellore. Currently, BPCL operates 3 refineries in Mumbai, Kochi, and Bina in Madhya Pradesh, with a combined annual refining capacity of around 36 MMTPA; the new proposed refinery in Andhra Pradesh may have a capacity of 9 MMTPA.