Bharat Petroleum Corporation Limited (BPCL) plans to establish a 9 million tonnes per year oil refinery-cum-petrochemical complex in Andhra Pradesh, with an estimated cost of Rs. 95,000 crore. This will be India’s most expensive refinery project, surpassing Hindustan Petroleum Corporation Limited’s (HPCL) Rs. 71,814 crore refinery in Barmer, Rajasthan.
BPCL’s board has approved Rs. 6,100 crore for pre-project activities, including land acquisition, feasibility studies, and preparation of a detailed project report (DPR). The final investment decision (FID) is expected by late 2025, with the refinery set to be operational within 48 months post-FID. The Andhra Pradesh government has also offered substantial capital subsidy incentives for the project.
The refinery will process 9 million tonnes of crude annually, producing 3–3.5 million tonnes of fuels like petrol and diesel, and 3.8–4 million tonnes of petrochemical feedstock. BPCL is exploring joint venture partnerships to share the investment burden.
Currently, BPCL operates refineries in Mumbai, Kochi, and Bina, with a total capacity of 35.3 million tonnes per year. The new refinery will boost India’s refining capacity, which stands at 256.8 million tonnes and is projected to reach 300 million tonnes by 2030.
Despite global shifts towards renewable energy, India’s oil demand is growing at 4–5% annually. The Andhra refinery is expected to meet domestic demand through 2040, aligning with the country’s clean energy goals, including achieving net-zero emissions by 2070.
