BPCL and Oil India to Build $11 Billion Refinery and Pursue Energy Expansion
Bharat Petroleum Corporation Limited (BPCL), Oil India Limited (OIL), and Numaligarh Refinery Limited (NRL) have signed memorandums of understanding to jointly develop a new refinery and related infrastructure. The $11 billion project, with a refining capacity of 9 to 12 million tonnes per annum, includes an ethylene cracker unit and aims for commercial operation by FY 2030. Additional partnerships focus on advancing green energy initiatives, reflecting a strategic move toward sustainable growth in India’s energy sector.
BPCL, Oil India, and Numaligarh Refinery Limited have entered into several significant agreements to collaborate on a large-scale refinery project and related infrastructure developments. The new refinery will have a capacity between 9 and 12 million tonnes per annum (MMTPA) along with a 1.5 MMTPA ethylene cracker, requiring an investment of approximately $11 billion (₹1 lakh crore). The project has secured key statutory clearances and 6,000 acres of government-allotted land in Andhra Pradesh, with pre-project activities already underway. The refinery is expected to start commercial operations by the financial year 2030.These partnerships also include cooperation on a major product pipeline and green energy projects with Fertilisers and Chemicals Travancore Limited, signifying a commitment to sustainable energy development. Leaders from the organizations highlighted that the collaboration aligns with the Indian government's Atmanirbhar Bharat vision, aiming to foster self-reliance, energy security, and diversification into midstream and downstream sectors. This joint venture showcases a strategic effort to enhance India's refining capacity, petrochemical capabilities, and energy infrastructure, thereby contributing to long-term value creation and national energy security.
