AP Clears ₹1 Lakh Cr BPCL Refinery Deal

In a landmark move, the Andhra Pradesh government has approved a ₹1 lakh crore Greenfield Refinery and Petrochemical Complex by Bharat Petroleum Corporation Limited (BPCL). The project, located near Ramayyapatnam Port in Nellore district, is set to reshape the industrial future of the region.

The state has allotted 6,000 acres to BPCL, divided into five parcels. Of this, 3,352 acres are earmarked for core refinery operations, while 1,127 acres will be developed as a green belt. The refinery will have a capacity of 9–12 million metric tonnes per annum (MMTPA)

BPCL plans phased investments:

• ₹4,843 crore in FY 2024–25
• ₹9,686 crore in FY 2025–26
• ₹14,529 crore in FY 2026–27
• ₹29,059 crore in FY 2028–29
• ₹38,745 crore in FY 2029–30

Total investment will reach ₹96,862 crore, with commercial operations expected by January 2029.

To support the project, Andhra Pradesh has offered:

• 43.5% capital subsidy in 15 instalments
• 100% GST refund during operations
• Refund of SGST and state share of IGST/CGST during construction
• Full waiver of stamp duty and registration fees

These incentives aim to attract long-term industrial growth and employment.

The refinery is projected to create:

• 3,400 jobs during construction (400 permanent)
• 3,750 jobs during operations (1,250 permanent, 2,500 temporary)

This will boost local livelihoods and skill development in Nellore and surrounding areas.

The complex will require 600 MW of power, with 100 MW generated in-house. The remaining will be sourced from the state grid. Infrastructure planning includes logistics, water supply, and environmental safeguards.

BPCL has initiated steps to secure environmental clearance. The Ministry of Environment’s Expert Appraisal Committee has mandated a public hearing and detailed action plan to address community concerns.

This refinery is part of India’s broader energy infrastructure strategy. It enhances self-reliance in petrochemicals and supports downstream industries across South India.

Ramayyapatnam Port’s proximity offers logistical advantages. The project is expected to catalyze industrial clusters, attract ancillary units, and elevate Nellore’s status as a manufacturing hub.

A high-level committee with representatives from stakeholder departments will oversee progress. Regular reviews will ensure timely execution and transparency.

The BPCL refinery marks a turning point for Andhra Pradesh’s industrial ambitions. With robust planning, environmental responsibility, and employment potential, it promises long-term benefits for the state and the nation.