State-owned Bharat Petroleum Corporation Ltd (BPCL) is exploring the establishment of a new oil refining and petrochemical complex to cater to India’s rising energy demand.

The company aims to invest ₹1.7 lakh crore over the next five years to expand its core refining and fuel retailing business while also venturing into new energy sectors.

BPCL, which lost one of its four oil refineries to Oil India Ltd during an aborted privatisation plan, is actively evaluating options for setting up additional refining and petrochemical capacities within the next 5-7 years. This expansion is necessary to meet the anticipated demand beyond its planned expansions in Bina and Kochi refineries.

It had to give up its Numaligarh refinery in Assam to OIL when the government tried to privatise the company. The transfer was to keep the Numaligarh unit within the public sector to honour the Assam accord. But BPCL’s privatisation was aborted due to lack of interest from bidders.

Chairman G. Krishnakumar told shareholders at the AGM that India’s annual consumption of refined fuels and petrochemicals is expected to grow by 4-5 per cent and 7-8 per cent, respectively, in the foreseeable future.

This presents a strategic opportunity for BPCL to expand its refining capacity alongside the development of integrated petrochemical complexes.

Building on its strong Indian energy presence, BPCL aspires to meet 7-10 per cent of the nation’s primary energy demand by 2047. The firm’s five-year strategic framework aims at nurturing its core businesses and investing in future big bets.

“While we remain committed to growing our core businesses, which include refining, marketing of petroleum products and upstream, we are equally focused on our big bets comprising petrochemicals, gas, green energy, non-fuel retail, and digital,” Krishnakumar said.

“A planned capex outlay of ₹1.70 lakh crore over five years will enable us to create long-term value for our stakeholders, while preserving our planet for future generations.”

BPCL’s healthy balance sheet, currently at zero net-debt at a standalone level, allows for these investments without compromising financial stability.

In addition to expanding oil refining capacity, the firm is looking to become a dominant player in India’s petrochemical growth story.