Key Highlights
- OIL and BPCL sign MoU to develop ₹1 lakh crore Greenfield Refinery and Petrochemical Complex in Andhra Pradesh
- Project to have refining capacity of 9–12 MMTPA and ethylene cracker unit of 1.5 MMTPA
- Facility to be India’s first major refinery-petrochemical complex in southern region
- Operations expected to begin by FY 2030
Oil India Limited (OIL) and Bharat Petroleum Corporation Limited (BPCL) have entered into a strategic collaboration to develop a Greenfield Refinery and Petrochemical Complex near Ramayapatnam Port in Nellore district, Andhra Pradesh, marking a major milestone in India’s downstream energy sector.
The proposed project, with an estimated investment of ₹1 lakh crore (approximately US$11 billion), will feature a refining capacity of 9–12 million metric tonnes per annum (MMTPA) and an ethylene cracker unit of 1.5 MMTPA. The mega facility is expected to commence commercial operations by FY 2030 and will serve as a key driver of growth for southern India’s refining and petrochemical ecosystem.
Under the terms of the non-binding Memorandum of Understanding (MoU), both companies will explore opportunities for collaboration, including the possibility of OIL acquiring a minority equity stake in the proposed joint venture. The project has already received essential statutory approvals and 6,000 acres of land from the Government of Andhra Pradesh, with pre-project activities currently in progress.
Dr. Ranjit Rath, Chairman and Managing Director of Oil India Limited and Chairman of Numaligarh Refinery Limited (NRL), stated that this collaboration marks a major step toward diversifying OIL’s business into the midstream and downstream segments. He noted that by partnering with BPCL, the companies aim to create long-term value, enhance energy security, and contribute to the nation’s refining and petrochemical capacity expansion.
Mr. Sanjay Khanna, Director (Refineries) and Additional Charge Chairman & Managing Director of BPCL, highlighted that the Ramayapatnam project represents a significant milestone in BPCL’s strategy to build world-class refining and petrochemical infrastructure in southern India. He added that the initiative aligns with India’s vision of Atmanirbhar Bharat, promoting self-reliance in fuels and petrochemicals while boosting regional economic growth.
This collaboration between OIL and BPCL underscores the Government of India’s broader goal of developing a sustainable and self-reliant energy sector, fostering industrial growth, and creating long-term employment opportunities in Andhra Pradesh.