Andhra Govt Allots 6,000 Acres to BPCL for ₹1 Lakh Crore Refinery; Offers 75% Capex as Incentives

In a major push to India’s energy and petrochemical sector, the Andhra Pradesh government has allotted 6,000 acres near Ramayyapatnam Port in Nellore district to Bharat Petroleum Corporation Limited (BPCL) for establishing a 9–12 MMTPA Greenfield Refinery-cum-Petrochemical Complex with an estimated investment of ₹1 lakh crore. The Government Order (GO) issued on October 7 grants in-principle approval for financial incentives covering up to 75% of the capital expenditure over a 20-year period under tailor-made provisions for ultra-mega projects. BPCL’s total investment is pegged at ₹96,862 crore, with phased spending of ₹4,843 crore (FY25), ₹9,686 crore (FY26), ₹14,529 crore (FY27-28), ₹29,059 crore (FY28-29), and ₹38,745 crore (FY30). The company will receive a 43.5% capital subsidy in 15 instalments, 100% GST refund, reimbursement of SGST and state’s IGST/CGST share during construction, and full waiver of stamp duty and registration fees. The project is expected to commence commercial operations by January 2029 and will be monitored by a High-Level Committee comprising stakeholder departments. BPCL has also sought approval from the Ministry of Environment, Forest and Climate Change (MoEFCC) for the project, estimated at ₹1.03 lakh crore with a 42-month completion schedule. The refinery complex is projected to generate 3,400 jobs during construction and 3,750 during operations, with a total power requirement of 600 MW — 100 MW from captive generation and 500 MW from the state grid.Disclaimer: PolyMart does not offer guarantees regarding the accuracy, reliability, or completeness of the information provided on its platform. Users are advised to independently verify any data before relying on it for decision-making purposes.