Andhra Pradesh pitches three sites for BPCL project

13 Aug 2024 , 09:42 AM

According to news reports, the Andhra Pradesh government has informed the Center that it can assign land for Bharat Petroleum’s (BPCL) proposed refinery-cum-petrochemicals complex either Machilipatnam, Ramayapatnam, or Mulapeta in the state.

The Andhra Pradesh administration, led by N Chandrababu Naidu, is advocating for the construction of a new refinery since it is expected to stimulate the state’s economy and create jobs. According to reports, BPCL is examining the land offer and may shortly decide on a single site.

In Andhra Pradesh, the company is thinking of constructing an integrated refinery-cum-petrochemicals complex with a capacity of 9–12 million tonnes per year (mtpa). A refinery with a 9 mtpa capacity would need between 800 and 1,000 acres of land, based on how it is currently configured.

It’s unclear if the state government would provide land at no cost or how it intends to get involved in the project. Typically, states provide tax breaks or free land in order to support refinery projects. Refinery construction prices vary greatly depending on configuration and land costs.

At a cost of over ₹33,000 Crore, Indian Oil intends to construct a refinery-cum-petrochem facility at Nagapattinam, Tamil Nadu, with a 9 mtpa capacity. The project’s land is already owned by the firm.

At Barmer, Rajasthan, Hindustan Petroleum (HPCL) expects to pay ₹72,000 Crore for the same capacity of 9 mtpa.

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