Bharat Petroleum Corporation (BPCL) and Oil India (OIL) signed a non-binding agreement on Tuesday to develop a refinery and a petrochemical complex at an investment of Rs 1 lakh crore in Andhra Pradesh.
BPCL also signed agreements with Numaligarh Refinery (NRL) and Oil India on a Rs 3,500-crore cross-country pipeline, and with Fertilisers and Chemicals Travancore (FACT) to market organic fertilisers from its Kochi biogas plant.
The proposed refinery, with a refining capacity of 9-12 million tonne per annum (MTPA), will be a cornerstone of India’s downstream expansion, BPCL said in a release.
Under the MoU, OIL could take a minority stake in the proposed joint venture. The project has already secured key statutory clearances and 6,000 acres of land from the Andhra Pradesh government, with pre-project activities in progress, the company said.
Sanjay Khanna, chairman & managing director, BPCL, said, “By joining hands with OIL, we are combining complementary strengths to create a project of strategic scale and sustainability. The Ramayapatnam complex will not only reshape BPCL’s portfolio but also reinforce India’s self-reliance in fuels and petrochemicals, in line with the vision of Atmanirbhar Bharat.”
Ranjit Rath, chairman & managing director of Oil India and chairman of Numaligarh Refinery, said, “This collaboration reaffirms our commitment to pursue various strategic diversification initiatives to midstream and downstream.
By partnering with BPCL, OIL and NRL look forward to leveraging our collective strengths to unlock value creation and contribute to the nation’s energy security and distribution infrastructure.” The construction of a 700-km cross-country product pipeline from Siliguri in West Bengal to Mughalsarai in Uttar Pradesh via Muzaffarpur will facilitate efficient evacuation of petroleum products following NRL’s expansion from 3 MTPA to 9 MTPA.
The pipeline, designed to transport motor spirit, high-speed diesel and aviation turbine fuel (ATF), will be jointly owned by BPCL (50%), with OIL and NRL sharing the remaining 50%. To ensure robust downstream logistics, the partners will augment BPCL’s depots at Mughalsarai and Muzaffarpur, and develop new facilities at Singrauli (Madhya Pradesh), Korba (Chhattisgarh), Khagaria (Bihar), and Tatanagar (Jharkhand).
BPCL’s tie-up with FACT will involve supply and trading of fermented organic manure and liquid fermented organic manure produced from BPCL’s upcoming municipal solid waste-based compressed biogas (CBG) plant at Brahmapuram, near Kochi refinery. The plant will process 150 MT of municipal waste per day, generating 5.6 MT of CBG, along with 28 MT of FOM and 100 KL of LFOM daily.
This collaboration will enable FACT to trade high-quality organic fertilisers, supporting sustainable agriculture while contributing to India’s waste-to-energy and green fuel vision.
