Mumbai: Bharat Petroleum Corporation Limited (BPCL) has approved the incorporation of a wholly-owned subsidiary to develop its proposed greenfield refinery and petrochemical complex at Ramayapatnam in Andhra Pradesh. The new entity will have an initial authorised share capital of up to ₹4,900 crore and will serve as a dedicated project company for the proposed facility.
The BPCL Board of Directors approved the formation of the subsidiary in India, according to regulatory filings submitted to the BSE and the National Stock Exchange of India on Friday.
The proposed refinery and petrochemical complex is a major planned project for BPCL. However, the detailed feasibility reports are still being finalised, and formal investment decisions and financial commitments will be considered separately by the competent authorities at an appropriate stage.
BPCL to Establish Dedicated Subsidiary for Ramayapatnam Project
The newly incorporated wholly-owned subsidiary will be responsible for facilitating the development of BPCL’s proposed greenfield refinery and petrochemical complex at Ramayapatnam, Andhra Pradesh, along with its associated facilities.
Creating a separate corporate entity is expected to provide a dedicated legal and governance framework for project execution. It will also help establish a clear organisational structure for managing the development of the refinery and petrochemical complex.
The proposed subsidiary will have an initial authorised share capital of up to ₹4,900 crore. This structure is intended to support the project’s development and facilitate the various processes required before implementation.
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New Entity to Support Financing and Potential Partnerships
The formation of a dedicated project company is expected to help BPCL undertake due diligence, engage with lenders and explore potential partnerships for the Ramayapatnam project.
The separate entity will also facilitate the development of an appropriate financing and partnership structure for the proposed refinery and petrochemical complex.
Such a framework can help organise project-related activities and provide a dedicated platform for discussions with financial institutions and prospective partners as the project advances.
However, the approval to incorporate the subsidiary does not represent a final investment decision for the refinery project.
Detailed Feasibility Reports Still Being Finalised
BPCL said the detailed feasibility reports for the proposed Ramayapatnam refinery and petrochemical complex are still being finalised.
Formal investment decisions and financial commitments will be considered separately by the competent authorities at the appropriate stage. Further project-related decisions will depend on the completion of the necessary assessments and approval processes.
The incorporation of the subsidiary marks an organisational step towards developing the proposed project, while the final investment and financing framework remains subject to further consideration.
About Bharat Petroleum Corporation Limited (BPCL)
Bharat Petroleum Corporation Limited (BPCL) is a Government of India-controlled public sector oil and gas company operating in the petroleum refining, fuel marketing and energy sectors. The company is involved in refining crude oil, marketing petroleum products and developing energy infrastructure to meet India’s growing energy requirements.
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