Bharat Petroleum Corporation Ltd (BPCL) said on Tuesday it has secured board approval to commence pre-project activities for setting up of a greenfield refinery-cum-petrochemical complex in Andhra Pradesh.
The total outlay for the project is expected to jump to ₹60,000 crore. The pre-project activities will involve expenses of ₹6,100 crore.
The project is seen as a big victory for the Chandrababu Naidu-led government who was keen on the oil marketing major setting up a refinery in his state. The commitment to establish such a refinery formed part of the Andhra Pradesh Reorganisation Act, 2014.
BPCL was reportedly also scanning other locations in Uttar Pradesh and Gujarat for setting up a refinery.
Naidu’s Telugu Desam Party (TDP) is a crucial ally for the BJP-led NDA government at the Centre.
In July, Naidu had held talks with the top leadership of BPCL for setting up the refinery and petrochemical complex on the state’s coastline.
It came after he met Prime Minister Narendra Modi and petroleum minister Hardeep Singh Puri in the national capital.
He had cited the Andhra Pradesh Reorganisation Act, 2014 which had required the establishment of an oil refinery in the state.
After the meeting between Naidu and the top management of BPCL, reports had said that the proposed project will be spread across 1,000 acres of land and that the state government had offered three sites to the corporation. It is not clear which site has now been chosen by BPCL.
Naidu had also ordered detailed feasibility studies for the three sites which according to an Economic Times report included Srikakulam, Machilipatnam and Ramayapatnam.
``The board at its meeting held on Tuesday, December 24, 2024, has accorded its approval to commence pre-project activities for setting up of a green field refinery-cum-petrochemical complex in East Coast at Andhra Pradesh at an estimated cost of ₹6,100 crore,’’ BPCL said in a regulatory filing to the bourses.
``The pre-project activities consist of various initial studies, land identification and acquisition, preparation of detailed feasibility report, environment impact assessment, basic design engineering package, front end engineering design,’’ it added.
The BPCL share ended with gains of 0.95 per cent at ₹291.85 on the announcement.