Bharat Petroleum Corporation Ltd (BPCL) has finalized the financial closure for its Bina refinery expansion and petrochemical project, securing ₹31,802 crore in funding through a loan agreement with a consortium of six banks, led by the State Bank of India (SBI). The total project cost is estimated at ₹48,926 crore. It aims to enhance the refinery’s capacity from 7.8 million tonnes per annum (MTPA) to 11 MTPA and establish a petrochemical complex, including a 1.2 MTPA ethylene cracker unit. The expansion will allow BPCL to produce various petrochemical products such as Linear Low-density Polyethylene (LLDPE), High-density Polyethylene (HDPE), Polypropylene (PP), and other aromatics, which will reduce India’s reliance on imports.
The project is designed to meet the growing demand for fuel in central and northern India. Construction is expected to be completed within 48 months. Located in Bina, Madhya Pradesh, the project was inaugurated by Prime Minister Narendra Modi on September 15, 2023, and is expected to create significant employment opportunities in the region.
Over 15,000 jobs will be generated during construction, and more than 100,000 direct and indirect jobs will be created after the plant becomes operational. This initiative is in line with India’s push for industrial growth, infrastructure enhancement, and energy security. Once completed, it will contribute to the nation’s self-sufficiency in polymer products.
G Krishnakumar, Chairman and Managing Director of BPCL, expressed enthusiasm about reaching financial closure for the project, stating that it is a key step towards enhancing India’s petrochemical production capacity and energy security.
SBI Chairman, Challa Sreenivasulu Setty, highlighted the importance of the partnership with BPCL and the successful financial closure, noting that the collaboration would continue to benefit both organizations and the country.
Bharat Petroleum Corporation Limited (BPCL) is one of India’s leading oil and gas companies, known for its diverse range of energy solutions. A wholly owned subsidiary of the Indian government, BPCL operates across refining, marketing, and distribution of petroleum products.
With a robust infrastructure that includes refineries, pipelines, and an extensive retail network of fuel stations across India, BPCL serves millions of customers every day. The company is also heavily invested in renewable energy, with a focus on green initiatives, including biofuels and solar energy, as part of its commitment to sustainable development. BPCL continues to innovate and evolve, ensuring energy security while contributing to India’s growth and development in the energy sector.
