Vijayawada: Nellore, October 10, 2025: The Andhra Pradesh government has cleared the decks for one of India’s largest industrial investments, approving the allotment of 6,000 acres near Ramayyapatnam Port in Nellore district to Bharat Petroleum Corporation Limited (BPCL) for establishing a 9 – 12 Million Metric Tonnes Per Annum (MMTPA) Greenfield Refinery and Petrochemical Complex.
The project, valued at around Rs 1 lakh crore, is expected to play a pivotal role in boosting the state’s industrial and economic landscape.
According to a government order issued on 7 October, the state has granted BPCL land on a cost basis and approved tailor-made financial incentives amounting to up to 75 per cent of the total capital expenditure over a 20-year period. This ultra-mega project will be closely monitored by a high-level committee comprising representatives from all stakeholder departments to ensure timely progress and completion.
BPCL plans to make phased investments, starting with Rs 4,843 crore in FY 2024-25, Rs 9,686 crore in FY 2025-26, and Rs 14,529 crore in FY 2026-27. The spending will ramp up significantly to Rs 29,059 crore in FY 2028-29 and Rs 38,745 crore in FY 2029-30, bringing the total investment to Rs 96,862 crore. The refinery is slated to commence commercial operations by January 2029.
The state has also approved extensive incentives for BPCL, including a 43.5 per cent capital subsidy payable in 15 instalments, 100 per cent GST refund during operations, refund of SGST and state share of IGST/CGST during construction, and complete waiver of stamp duty and registration fees.
BPCL, while seeking environmental clearance, has projected the refinery’s cost at Rs 1.03 lakh crore with a completion schedule of 42 months. The facility is expected to generate around 3,400 jobs during construction (including 400 permanent positions) and 3,750 jobs during operations (1,250 permanent and 2,500 temporary).
The refinery-cum-petrochemical complex will require approximately 600 MW of power, of which 100 MW will be produced in-house and the remaining sourced from the state grid.
The Ministry of Environment, Forest and Climate Change’s Expert Appraisal Committee (EAC) has instructed BPCL to conduct a public hearing and submit a detailed report outlining proceedings, action plans, and budgetary allocations to address community concerns.
With this strategic move, Andhra Pradesh aims to position itself as a major industrial hub for petroleum and petrochemicals, while fostering employment and economic growth in the southern region.
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