BPCL and OIL Partner to Develop Rs1-Lakh Crore Ramayapatnam Greenfield Refinery

• Bharat Petroleum Corporation Limited (BPCL) and Oil India Limited (OIL) have signed a non-binding agreement to jointly develop a Rs1-lakh crore Greenfield Refinery and Petrochemical Complex at Ramayapatnam in Andhra Pradesh’s Nellore district . The project, backed by the state government, aims to expand India’s refining and petrochemical capacity by FY 2030 .

High-Capacity Refinery and Petrochemical Unit

• The proposed facility will have a refining capacity of 9–12 million metric tonnes per annum (MMTPA) and include a 1.5 MMTPA ethylene cracker unit , the first in southern India. With a petrochemical intensity of 35% , the project will enable BPCL to diversify into high-value chemical production.

Strategic Collaboration and Investment

• BPCL and OIL will explore various partnership models, including OIL acquiring a minority stake in the project. According to BPCL Director (Refineries) Sanjay Khanna , the refinery has secured all major statutory clearances. The Andhra Pradesh government has allotted 6,000 acres for the project under Government Order No. 180 , reinforcing its goal to make the state a key energy hub.

Supporting Infrastructure

• BPCL, OIL, and Numaligarh Refinery Limited (NRL) have also signed a tripartite agreement to build a 700-km product pipeline from Siliguri to Mughalsarai via Muzaffarpur , costing Rs 3,500 crore . The pipeline will transport petrol, diesel, and aviation turbine fuel , with BPCL holding a 50% stake . Additionally, BPCL has partnered with FACT for the supply and trading of Fermented Organic Manure and Liquid Fermented Organic Manure from its upcoming Compressed Biogas Plant in Kochi .

Exam-Oriented Facts

• Project cost : Rs1 lakh crore

• Capacity : 9–12 MMTPA refinery with 1.5 MMTPA ethylene cracker

• Commercial operations : By FY 2030

• Land allotted : 6,000 acres by Andhra Pradesh government

Economic and Industrial Impact

The Ramayapatnam refinery is expected to generate thousands of jobs and drive industrial growth in southern Andhra Pradesh. It will also strengthen India’s self-reliance in petrochemicals, support local manufacturing, and advance the country’s energy security goals through domestic capacity expansion.