Amaravati, Sep 16 (IANS) Bharat Petroleum Corporation Limited (BPCL) greenfield refinery-cum-petrochemical project near Ramayapatnam Port in Andhra Pradesh is estimated to cost around Rs 1.45 lakh crore.
Final environmental clearance for the project is expected to be received by the end of September.
This was informed by BPCL Chairman and Managing Director (CMD) Sanjay Khanna to Andhra Pradesh Chief Minister N. Chandrababu Naidu on Wednesday.
The Chief Minister urged the BPCL to expedite the commencement of works on the project.
He also proposed setting up a downstream petrochemical park in the vicinity of the refinery.
Sanjay Khanna told the Chief Minister Chandrababu Naidu that the project, being established between Prakasam and Nellore districts, is estimated to cost around Rs 1.45 lakh crore.
He said that an integrated greenfield refinery with a capacity of 9 million tonnes per annum is being planned.
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 works on the refinery will commence thereafter, BPCL CMD said.
Sanjay Khanna noted that the refinery would produce Euro-6 standard fuels, including Motor Spirit, High-Speed Diesel and Aviation Turbine Fuel, with a combined production of around 5.4 million tonnes.
Other petrochemical products are expected to account for around 3.2 million tonnes.
The project will also generate downstream products and by-products such as HDPE, LDPE, LLDPE, polypropylene and polyvinyl chloride (PVC).
The Chief Minister said that 75 per cent of the 6,000 acres of land required for the refinery has already been handed over and assured that the remaining land would be handed over by the second week of October.
He directed officials and BPCL representatives to accelerate all project-related processes and ensure that construction works commence at the earliest.
The Chief Minister suggested that BPCL and APIIC jointly prepare a plan for establishing a downstream petrochemical park over around 1,500 acres near the refinery.
Chief Minister Chandrababu Naidu said that demand for petrochemicals is changing rapidly with increasing urbanisation and the expansion of the manufacturing sector in India.
With the country’s petrochemical intensity index, currently around 5 per cent, expected to rise to 15–20 per cent over the next decade, he added that the refinery should be designed keeping future requirements in mind.
The Chief Minister suggested that modern refineries should focus not merely on converting crude oil into fuels, but also on increasing the production of chemical feedstocks such as ethylene and propylene.
BPCL CMD said India’s chemical and petrochemical sector is expected to reach $1 trillion by 2040 and that BPCL would work towards meeting the country’s future requirements.
–IANS
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