Announce BPCL refinery for Andhra Pradesh in Budget 2024, Naidu tells Centre

Representative image

Andhra Pradesh Chief Minister Chandrababu Naidu has urged the central government to announce in the upcoming Budget the setting up of a new refinery by Bharat Petroleum Corporation Limited (BPCL) in the state, a source aware of the matter told Moneycontrol.

In a meeting with Petroleum and Natural Gas Minister Hardeep Singh Puri, the Telugu Dasam Party’s (TDP) leader requested the government to set up a refinery in the state, as per Section 93(4) of the Andhra Pradesh Reorganisation (APR) Act, 2014.

Puri met with Naidu on July 4 to discuss possible collaborations in the energy sector, according to the ministers’ post on X.

The Andhra Pradesh government said the establishment of the refinery in the state “will augur well for increasing the refinery capacity of the country” and will help India in becoming a developed nation.

State-run BPCL plans to set up a new refinery amid rising petrochemical demand in the country. However, the company has not come up with the location of the refinery yet.

Moneycontrol has earlier reported that BPCL is considering setting up the refinery in Uttar Pradesh’s Prayagraj, and is currently evaluating various aspects, including the throughput of the refinery and availability of feedstock.

Puri, while taking charge of the ministry under the NDA-government on June 11, had told reporters that BPCL's plans to set up a greenfield refinery are at an advanced stage, without disclosing the timeline and location of the refinery.

Bharat Petroleum currently runs three refineries in Mumbai, Kochi, and Bina in Madhya Pradesh. The company has announced investment plans of Rs 1.7 lakh crore over the next five years in the core oil refining, fuel marketing, petrochemical, and clean energy businesses.

In May 2023, BPCL also announced the capacity expansion of its refinery in Bina to 11 MMTPA (million metric tonnes per annum), from 7.8 MMTPA currently.