Chief Minister N. Chandrababu Naidu has directed Bharat Petroleum Corporation Limited (BPCL) to expedite the commencement of work on its proposed greenfield refinery-cum-petrochemical project near Ramayapatnam Port and suggested setting up a downstream petrochemical park in its vicinity.
BPCL Chairman and Managing Director Sanjay Khanna met Mr. Naidu on Wednesday and informed him that the integrated project, coming up between Prakasam and Nellore districts, was estimated to cost around ₹1.45 lakh crore. The proposed refinery will have a capacity of 9 million tonnes per annum.
According to Mr. Khanna, the project is expected to receive final environmental clearance by the end of September. The final investment cost is likely to be firmed up in October after the study report being prepared by Engineers India Limited (EIL) is received. Construction work will commence thereafter, he said.
The refinery is planned to produce Euro-6 standard fuels, including Motor Spirit, High-Speed Diesel and Aviation Turbine Fuel, with a combined output of around 5.4 million tonnes. Another 3.2 million tonnes is expected to comprise petrochemical products. The project will also produce downstream products and by-products, including high-density polyethylene (HDPE), low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), polypropylene and polyvinyl chloride (PVC).
Mr. Naidu said that 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 accelerate the processes associated with the project and ensure that construction began at the earliest.
The Chief Minister suggested that BPCL and the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) jointly prepare a plan for establishing a downstream petrochemical park over approximately 1,500 acres near the refinery. He said that the demand for petrochemicals was changing rapidly, with increasing urbanisation and the expansion of the manufacturing sector. He noted that India’s petrochemical intensity index, currently around 5%, was expected to rise to 15-20% over the next decade.
He suggested that the refinery be designed keeping future requirements in view, with modern refineries focusing not only on converting crude oil into fuels, but also on increasing the 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.
Published – September 16, 2026 10:12 pm IST
