AP allots 6,000 acres for BPCL's mega greenfield refinery at Dugarajapatnam
Project complex to come up near Ramayyapatnam port with an operational capacity ranging between 9-12 MMTPA
image for illustrative purpose
Amaravati: In a significant development towards accelerating port-led development, Andhra Pradesh Government has allotted 6,000 acres near Ramayapatnam Port in Nellore district to BPCL for its mega petrochemical project.
The project to manufacture 9 to 12 million metric tonnes per annum (MMTPA) is envisaged with an investment of Rs96,862 crore.
Industries & Commerce Department in a GO stated that government has approved the proposal of BPCL for setting up of greenfield refinery and petrochemical complex near Ramayyapatnam port with an operational capacity of the refinery, ranging between 9-12 MMTPA.
The land is given on cost basis and commitment to provide financial incentives covering 75% of the capital expenditure over 20 years on investment of Rs96,862 crore to set up a greenfield refinery and petrochemical complex near Ramayyapatnam port, as per the tailor-made Incentives provision of AP Industrial Development Policy (IDP) 4.0 (2024-29).
In GO Ms. No.180, N Yuvaraj, Principal Secretary, Industries and Commerce said SIPB had already approved the proposal made by BPCL. The company will invest Rs4,843 crore in first year itself followed by Rs9,686 crore in 2026-27, Rs14,529 crore in 2027-28, Rs29,059 crore in 2028-29 and Rs38,862 crore in 2029-30. The land allotted will be used for refinery and petrochemical complex, township, administration, maintenance and product tanks. The company will earmark 1,085 acres for crude oil terminal, 800 acres for green H2/renewables.
BPCL plans to conduct detailed studies to refine the Capex estimate to a +/- 10% accuracy level, enabling an informed Final Investment Decision and as part of the detailed studies, there may be potential variations in the final Capex. Accordingly, they have requested the State Government to uphold the agreed principle of providing financial incentives amounting to 75% of the total Capex as per the detailed studies, to be disbursed over 20 years from the commencement of project activities, to ensure the project’s viability and they have requested for the required government order in this regard and expedited land acquisition to enable the swift advancement of this project.
