Indian state-run energy companies Bharat Petroleum Corporation Ltd (BPCL) and Oil India Ltd (OIL) are teaming up to build a new integrated greenfield refinery and petrochemical complex in Andhra Pradesh. The ambitious project, located near Ramayapatnam Port, carries an estimated investment of $11 billion (approximately 1 lakh crore Indian Rupees) and aims for commercial operations by 2030.^{[1][2][3][4][5][6][7][8][9]} This major development signals a strategic move to boost India's refining capacity and petrochemical production.^[1][2][6] ### New Refinery to Boost Southern India's Energy Sector The proposed Ramayapatnam complex will have a refining capacity of 9 to 12 million tonnes per annum (MMTPA).^{[1][3][4][5][6][7][8][9]} It will also feature a 1.5 MMTPA ethylene cracker unit, which will be the first of its kind in southern India.^{[1][2][3][5][6][7][8][9]} This complex will have a high petrochemical intensity of 35%, making it one of the highest in the country.^[1][9] BPCL and OIL signed a non-binding Memorandum of Understanding (MoU) to explore this collaboration.^{[1][4][5][6][7]} Oil India is considering taking a minority equity stake, between 10% and 20%, in the joint venture.^{[2][3][4][5][6][7]} The project has already secured crucial statutory clearances and 6,000 acres of land from the Andhra Pradesh government.^{[1][2][3][4][6]} Pre-project activities are currently underway.^{[1][2][3][4][6]} BPCL Chairman Sanjay Khanna highlighted the importance of this partnership. He said joining hands with OIL combines complementary strengths to create a project of strategic scale and sustainability.^[4][6] Khanna added that the Ramayapatnam complex will reshape BPCL's portfolio and strengthen India's self-reliance in fuels and petrochemicals.^[6] ### BPCL's Broader Expansion and Net-Zero Goals The Ramayapatnam refinery is part of BPCL's larger growth strategy, dubbed "Project Aspire," involving an investment of over 1.7 lakh crore Indian Rupees (more than $20 billion) over the next five years.^[10][11] This extensive plan aims to strengthen BPCL's core businesses in oil refining and fuel marketing.^[10] It also includes significant expansion into new sectors such as petrochemicals, gas, and green energy.^[10][11] BPCL is also actively expanding its existing Bina refinery in Madhya Pradesh. This expansion will increase the refinery's capacity from 7.8 MMTPA to 11 MMTPA.^{[12][13][14][15][10][11]} The Bina project involves an estimated capital expenditure of approximately 49,000 crore Indian Rupees (about $5.9 billion).^{[12][13][14][15][10]} It includes setting up an ethylene cracker complex and downstream petrochemical plants.^{[12][13][14][15]} In January 2025, BPCL secured a loan agreement of 31,802 crore Indian Rupees (about $3.8 billion) from a consortium of six lenders, led by the State Bank of India, for this expansion.^[14][15] This project is expected to be completed within 48 months from September 2023, creating over 15,000 construction jobs and more than 1 lakh direct and indirect jobs post-commissioning.^[14] Beyond refining, BPCL is making strides in green energy. The company aims to achieve net-zero carbon emissions from its operations by 2040.^[16][17][10] To reach this target, BPCL plans to invest 1 trillion Indian Rupees (approximately $12 billion) in renewable power, green hydrogen, compressed biogas, and carbon capture technologies.^[17] The company targets building 2 gigawatts (GW) of renewable energy capacity by 2025 and an impressive 10 GW by 2035.^[17][10] Additionally, BPCL has a polypropylene project at its Kochi refinery expected by 2027.^[10] ### Oil India and NRL Drive Refinery Upgrades and Clean Energy Oil India Limited (OIL) is also pursuing significant expansion and diversification. Its subsidiary, Numaligarh Refinery Ltd (NRL) in Assam, is undergoing a major capacity expansion.^{[2][3][5][16][18][19][20][7][21][8][22][23][24]} The NRL refinery's capacity will increase threefold, from 3 MMTPA to 9 MMTPA.^{[2][3][5][16][18][19][20][7][21][8][22][23][24]} This expansion project has an anticipated cost of around 33,901 crore Indian Rupees (about $4.1 billion).^[22] As of March 2025, over 75% of the physical work on the NRL expansion was complete, with the project expected to finish by December 2025.^{[16][18][19][20][22][23]} To support the expanded NRL refinery, a 1,640-kilometer cross-country pipeline is under construction.^{[20][21][22][23]} This pipeline will transport imported crude oil from Paradip Port in Odisha to Numaligarh.^{[20][21][22][23]} The pipeline traverses five states: Odisha, Jharkhand, Bihar, West Bengal, and Assam.^[21][22] Oil India is also heavily investing in clean energy initiatives to meet its own net-zero carbon emission target by 2040.^{[16][18][19][25][26]} The company plans to invest 25,000 crore Indian Rupees (about $3 billion) in various clean energy projects.^{[16][18][19][25][26]} These projects include setting up 640 megawatts (MW) of solar capacity in Assam and 150 MW in Himachal Pradesh.^{[16][19][25][26]} OIL's clean energy strategy also encompasses building green hydrogen plants, biogas plants, and ethanol plants.^{[16][18][19][25][26]} Furthermore, OIL aims to boost its crude oil and natural gas production to 9 million tonnes of oil and oil equivalent gas by fiscal year 2025-26.^{[16][18][19][26]} ### Strengthening India's Energy Infrastructure In another collaborative effort, BPCL, OIL, and NRL have signed a tripartite MoU to build a 700-kilometer cross-country product pipeline.^{[1][2][3][5][7][8][27]} This pipeline, running from Siliguri to Mughalsarai via Muzaffarpur, will cost an estimated 3,500 crore Indian Rupees (about $395 million).^{[1][2][3][5][7][8][27]} It will transport petrol, diesel, and jet fuel.^{[2][3][7][27]} BPCL will own 50% of this pipeline, with OIL and NRL sharing the remaining 50%.^{[1][2][5][7][27]} This project will also involve augmenting existing depot infrastructure and developing new facilities to strengthen downstream logistics.^[27] These extensive investments and partnerships by BPCL and Oil India underscore India's commitment to enhancing its energy security, meeting growing domestic demand for petroleum products and petrochemicals, and advancing towards a more sustainable energy future.^{[1][2][6][8][10]}