Beating competition from the BJP-ruled Uttar Pradesh and Gujarat, Andhra Pradesh has bagged a big-ticket investment from state-run Bharat Petroleum Corporation Ltd (BPCL), which will be setting up a greenfield oil refinery and petrochemical complex in the state.
The mega project is expected to bring in a whopping Rs 95,000 crore in investment over the years. The TDP, the ruling party in the state, is a key ally in the BJP-led NDA government at the Centre.
BPCL's board on Tuesday approved the proposal to set up the refinery and petrochemical complex in AP. BPCL, in its filing with market regulator SEBI, said that the corporation's board has accorded its approval to commence pre-project activities for the setting up of a greenfield refinery-cum-petrochemical complex on the east coast in Andhra Pradesh.
With this, a key promise made in the Andhra Pradesh State Reorganisation Act, 2014, is now set to become a reality.
The BPCL has approved an initial investment of Rs 6,100 crore to commence pre-project activities, including initial studies, land identification, and acquisition costs.
The company will need at least 4,000 to 5,000 acres of land to set up the refinery. The state government has reportedly offered land near the port that is coming up in Ramayapatnam in Nellore.
Currently, BPCL operates 3 refineries in Mumbai, Kochi, and Bina in Madhya Pradesh, with a combined annual refining capacity of around 36 MMTPA (million metric tonne per annum). The proposed refinery in AP may have a capacity of 9 MMTPA.
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