In a major industrial boost, the Andhra Pradesh Government has allotted 6,000 acres of land near Ramayyapatnam Port in Nellore District to Bharat Petroleum Corporation Limited (BPCL) for setting up a Greenfield refinery cum petrochemical complex, as per the news reports.
The proposed refinery, with a capacity of 9-12 Million Metric Tons Per Annum (MMTPA), entails an estimated investment of ₹1,00,000 crore, marking one of India’s largest energy infrastructure projects.
The state government issued an order approving financial incentives for BPCL covering up to 75% of the capital expenditure over 20 years from the start of project activities. The refinery project, valued at ₹96,862 crore, will be executed in phases under tailor-made incentive provisions. According to the government order, BPCL will invest ₹4,843 crore in the current financial year, ₹9,686 crore in the next, ₹14,529 crore in 2027-28, ₹29,059 crore in 2028-29, and ₹38,745 crore in FY30.
The project is classified as an ultra-mega investment and will be monitored regularly by a High-Level Committee comprising key stakeholder departments to ensure timely completion and operational readiness by January 2029.
BPCL will receive a 43.5% capital subsidy disbursed in 15 instalments, along with a 100% GST refund during the operational phase. The package also includes a refund of SGST and the state’s share in IGST/CGST during construction, plus a complete waiver of stamp duty and registration fees. The Andhra Pradesh Government aims to fast-track clearances and support utilities for the ₹1 trillion project.
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BPCL has sought approval from the Ministry of Environment, Forest and Climate Change for preparing the Terms of Reference (ToR) of the 9 MMTPA project, pegged at a cost of ₹1,03,000 crore with a 42-month completion schedule. The Expert Appraisal Committee (EAC) has directed the company to conduct a public hearing and prepare a detailed report covering the proceedings, public concerns, and mitigation plans with a defined budget and timeline.
The complex will require 600 MW of power, of which 100 MW will be produced internally via a captive plant, and the remaining 500 MW will be supplied by the state grid, ensuring stable operations once production begins.
The refinery project is expected to generate 3,400 jobs during construction (400 permanent and 3,000 temporary) and 3,750 jobs in the operational phase, including 1,250 permanent roles. The development will drive regional growth, boost port activity at Ramayyapatnam, and strengthen India’s refining capacity, aligning with the nation’s long-term energy security goals.
The Andhra Pradesh Government’s allotment of land and incentives to BPCL for the ₹1 trillion Greenfield refinery marks a transformative step in India’s petroleum infrastructure landscape. With clear timelines, large-scale investment, and sustainable energy provisions, the project is poised to become a cornerstone of industrial growth in southern India.
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Published on: Oct 9, 2025, 2:56 PM IST
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