In a major boost to India’s energy and petrochemical sector, the Andhra Pradesh government has allotted 6,000 acres near Ramayyapatnam Port in Nellore district to Bharat Petroleum Corporation Limited (BPCL) for the establishment of a 9 to 12 MMTPA Greenfield Refinery cum Petrochemical Complex, with an estimated investment of around ₹1 lakh crore.
The government’s order, issued on October 7, provides in-principle approval for financial incentives covering up to 75 per cent of the capital expenditure over 20 years under tailor-made provisions. BPCL plans to invest ₹4,843 crore in the current financial year, ₹9,686 crore next year, ₹14,529 crore in 2027–28, ₹29,059 crore in 2028–29, and ₹38,745 crore in FY30, totaling ₹96,862 crore.
The public sector company will benefit from a capital subsidy of 43.5 per cent in 15 instalments, full GST refund during operations, reimbursement of SGST and state share of IGST/CGST during construction, along with complete waiver of stamp duty and registration fees. The project is expected to be operational by January 2029 and will be overseen by a High-Level Committee comprising relevant stakeholder departments.
Also Read: Passengers Alert for Delhi IGI Airport: Air India moves 60 Flights to T2, AI Express shifts to T1
According to reports, BPCL has sought permission from the Ministry of Environment, Forest and Climate Change to prepare Terms of Reference, estimating the project cost at ₹1.03 lakh crore with a 42-month completion schedule. Employment generation is projected at 3,400 during construction (400 permanent, 3,000 temporary) and 3,750 during operations (1,250 permanent, 2,500 temporary).
The ministry’s Expert Appraisal Committee has asked BPCL to conduct a public hearing, prepare a detailed report including an action plan, budget allocation, and timelines to address public concerns. The complex’s total power requirement will be 600 MW, with 100 MW from an in-house captive power plant and the remaining 500 MW sourced from the state grid.
Be a part of Elets Collaborative Initiatives. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook , connect with us on LinkedIn and follow us on Twitter, Instagram.
"Exciting news! Elets technomedia is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!
