Mega Expansion: BPCL Plans Rs 50,000 Crore New Refinery

Bharat Petroleum Corporation Limited (BPCL) has announced plans to establish a new 12 million tonnes per annum (MTPA) refinery in India, with an investment estimated at around Rs 50,000 crore. The company is currently evaluating potential locations for the project in Andhra Pradesh, Uttar Pradesh, and Gujarat. This initiative aims to address the nation's rising demand for fuel and petrochemicals.

BPCL's strategic goal is to expand its refining capacity to 45 MTPA by the fiscal year 2029. Presently, BPCL operates three refineries located in Mumbai, Kochi, and Bina, Madhya Pradesh, which collectively have an annual refining capacity of approximately 36 MTPA. The new refinery project will significantly contribute to this capacity enhancement.

In addition to the new refinery, BPCL has outlined a substantial investment plan of Rs 1.7 lakh crore over the next five years. This capital expenditure will focus on oil refining, the petrochemical business, and clean energy initiatives. Of this total investment, Rs 75,000 crore has been specifically allocated for refinery and petrochemical projects.

Fuel demand in India reached 233.276 million tonnes (MT) in the fiscal year 2024, an increase from 223.021 MT in the previous year. This growing demand underscores the necessity for increased refining capacity to ensure a steady supply of fuel and petrochemical products to meet the country's needs.

The Indian government is also keen on augmenting the nation’s refining capacity, with plans to boost it by nearly 80 percent from the current 252 MTPA to approximately 450 MTPA by 2030. This ambitious target aligns with the broader objective of accommodating the burgeoning demand for fuel and supporting the country's economic growth.

News by Rahul Yelligetti