Naidu Urges BPCL to Speed Up Ramayapatnam Refinery, Proposes Petrochemical Park

Andhra Pradesh Chief Minister N. Chandrababu Naidu has asked Bharat Petroleum Corporation Limited (BPCL) to accelerate work on its proposed greenfield refinery-cum-petrochemical project near Ramayapatnam Port, and proposed setting up a downstream petrochemical park in the vicinity.

The direction came during a meeting on Wednesday between Mr. Naidu and BPCL Chairman and Managing Director Sanjay Khanna, who briefed the Chief Minister on the project's progress and timelines.

Project scale and cost

The integrated project, spread between Prakasam and Nellore districts, carries an estimated cost of about ₹1.45 lakh crore. The refinery is designed for a capacity of 9 million tonnes per annum.

According to Mr. Khanna, the project is expected to secure final environmental clearance by the end of September. The final investment cost is likely to be firmed up in October, once the study report being prepared by Engineers India Limited (EIL) is received. Construction is slated to begin after that.

Product slate

The refinery is planned to produce Euro-6 standard fuels — Motor Spirit, High-Speed Diesel and Aviation Turbine Fuel — with a combined output of around 5.4 million tonnes. A further 3.2 million tonnes is expected to comprise petrochemical products. The project will also yield downstream products and by-products including high-density polyethylene (HDPE), low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), polypropylene and polyvinyl chloride (PVC).

Land and timelines

Mr. Naidu said 75% of the 6,000 acres required for the refinery had already been handed over, and assured that the remaining land would be provided by the second week of October. He directed officials and BPCL representatives to speed up the associated processes and ensure construction begins at the earliest.

Petrochemical park proposal

The Chief Minister suggested that BPCL and the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) jointly prepare a plan for a downstream petrochemical park over approximately 1,500 acres near the refinery. He noted that demand for petrochemicals was changing rapidly amid increasing urbanisation and the expansion of the manufacturing sector, and that India's petrochemical intensity index — currently around 5% — was expected to rise to 15–20% over the next decade.

Mr. Naidu also suggested that the refinery be designed with future requirements in view, pointing out that modern refineries focus not only on converting crude oil into fuels but also on increasing production of chemical feedstocks such as ethylene and propylene.

Mr. Khanna said India's chemical and petrochemical sector was expected to reach $1 trillion by 2040, and that BPCL would work towards meeting the country's future requirements.