BPCL and OIL Join Hands to Develop ₹1-Lakh Crore Ramayapatnam Greenfield Refinery

Bharat Petroleum Corporation Limited (BPCL) and Oil India Limited (OIL) have entered into a non-binding agreement to collaborate on the development of a ₹1-lakh crore Greenfield Refinery and Petrochemical Complex at Ramayapatnam in Andhra Pradesh’s Nellore district. The project, which has received key approvals from the state government, aims to significantly enhance India’s refining and petrochemical capacities by the end of this decade.

High-Capacity Refinery and Petrochemical Integration

The proposed Ramayapatnam 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 of its kind in southern India. The project is designed with a petrochemical intensity of 35%, enabling BPCL to expand into high-value chemical production. Commercial operations are expected to commence by FY 2030, making it one of the largest downstream energy investments in the country.

Strategic Collaboration and Investment Framework

Under the Memorandum of Understanding, BPCL and OIL will explore multiple collaboration models, including the possibility of OIL acquiring a minority equity stake in the project. According to BPCL Director (Refineries) and interim CMD Sanjay Khanna, the refinery has already obtained statutory clearances, and 6,000 acres of land have been allocated by the Andhra Pradesh government for its development. The state’s approval, formalised through Government Order No. 180, underscores its commitment to positioning Andhra Pradesh as a major energy hub.

Supporting Infrastructure and Associated Projects

BPCL, OIL, and Numaligarh Refinery Limited (NRL) have also signed a tripartite agreement to develop a 700-kilometre cross-country product pipeline from Siliguri to Mughalsarai via Muzaffarpur, with an investment of ₹3,500 crore. This pipeline will facilitate the transport of Motor Spirit, High-Speed Diesel, and Aviation Turbine Fuel, with BPCL holding a 50% stake. Additionally, BPCL inked a pact with FACT for the supply and trading of Fermented Organic Manure and Liquid Fermented Organic Manure from its upcoming municipal solid waste-based Compressed Biogas Plant in Kochi.

Exam Oriented Facts

• The Ramayapatnam Greenfield Refinery will cost around ₹1 lakh crore.
• It will have a refining capacity of 9–12 MMTPA with a 1.5 MMTPA ethylene cracker unit.
• Commercial operations are expected to start by FY 2030.
• 6,000 acres of land have been allotted by the Andhra Pradesh government for the project.

Economic and Industrial Impact

The refinery is projected to create thousands of direct and indirect jobs, while boosting local infrastructure and industrial development in southern Andhra Pradesh. By integrating petrochemical production within a large-scale refinery, BPCL aims to strengthen India’s self-reliance in high-value chemical manufacturing. The partnership with OIL is also expected to enhance resource optimisation and operational efficiency, aligning with the government’s broader objective of expanding domestic refining capacity and achieving energy security.