Bharat Petroleum Corporation Limited (BPCL) is planning to establish a new 12 million metric tonnes per annum (MMTPA) refinery in India. The state-run oil marketing company is set to invest around Rs 50,000 crore in the project, with potential locations currently being assessed in Andhra Pradesh, Uttar Pradesh, and Gujarat.
“The BPCL is planning another refinery either on the east coast or on the west coast as India needs more refineries to meet the increasing fuel demand. Talks are at a preliminary stage,” an official stated. The official also mentioned that Uttar Pradesh is under consideration as a possible location for the new refinery.
Last month, BPCL Chairman G Krishnakumar announced plans to increase the company’s refining capacity to 45 MMTPA by FY29. BPCL currently operates three refineries located in Mumbai, Kochi, and Bina (Madhya Pradesh), with a combined annual refining capacity of around 36 MMTPA.
Investment Plans for the Next Five Years
BPCL plans to invest around Rs 1.7 trillion over the next five years in its core businesses of oil refining, fuel marketing, petrochemicals, and clean energy. Of this total capital expenditure, Rs 75,000 crore is allocated for refineries and petrochemical projects, Rs 8,000 crore for pipeline projects, and more than Rs 20,000 crore for its marketing business.
An official cited that BPCL is considering establishing a new refinery since a proposed plan to build a 60 MMTPA integrated refinery and petrochemical complex on the west coast in Maharashtra did not materialize. In 2015, the government proposed constructing Asia’s largest refinery in Ratnagiri, Maharashtra, at a cost of Rs 3 trillion to meet the country’s growing demand for fuel and petrochemicals.
In 2017, a joint venture company between Indian Oil Corporation, BPCL, Hindustan Petroleum Corporation, and Saudi Aramco — named Ratnagiri Refinery and Petrochemicals (RRPCL) — was formed to execute the project. However, the plan has not progressed as anticipated, prompting BPCL to explore alternative sites for their new refinery.
This new initiative by BPCL aims to address the increasing fuel demand in India, ensuring the country remains self-sufficient in meeting its energy needs.
