CM Naidu asks BPCL to expedite Rs 1.45 lakh crore refinery, petrochemical project in Andhra

Andhra Pradesh Chief Minister N Chandrababu Naidu on Wednesday asked BPCL to expedite the commencement of work on its Rs 1.45 lakh crore greenfield refinery-cum-petrochemical project near Ramayapatnam Port. During a meeting with BPCL Chairman and Managing Director Sanjay Khanna and other officials, the Chief Minister proposed setting up a downstream petrochemical park in the vicinity of the refinery, according to an official release.

Khanna informed the CM that the project, coming up between Prakasam and Nellore districts, is estimated to cost around Rs 1.45 lakh crore. He said an integrated greenfield refinery with a capacity of nine million tonnes per annum is being planned, with final environmental clearance expected by the end of September. BPCL will finalise the project’s investment cost in October after receiving a study report from Engineers India Limited, following which construction is expected to begin.

Khanna noted that the refinery would produce Euro-6 standard fuels, including Motor Spirit, High-Speed Diesel and Aviation Turbine Fuel, with combined production of around 5.4 million tonnes. Other petrochemical products are expected to account for around 3.2 million tonnes, including downstream products and by-products such as HDPE, LDPE, LLDPE, polypropylene and polyvinyl chloride (PVC).

The Chief Minister said 75% of the 6,000 acres of land required for the refinery has already been handed over, and assured that the remaining land would be handed over by the second week of October. Naidu suggested that BPCL and Andhra Pradesh Industrial Infrastructure Corporation (APIIC) jointly prepare a plan for establishing a downstream petrochemical park over approximately 1,500 acres near the refinery, pointing to rapidly changing demand for petrochemicals amid increasing urbanisation and manufacturing sector expansion in India. He directed officials and BPCL representatives to accelerate all project-related processes and ensure that construction works commence at the earliest.