Bharat Petroleum Corporation Ltd (BPCL) and Oil India Ltd (OIL) have signed a non-binding Memorandum of Understanding (MoU) to jointly develop a refinery and petrochemical complex in Andhra Pradesh with an estimated investment of ₹1 lakh crore.
In addition, BPCL inked two more agreements — one with Numaligarh Refinery Ltd (NRL) and OIL for a ₹3,500-crore cross-country pipeline, and another with Fertilisers and Chemicals Travancore Ltd (FACT) to market organic fertilisers from its Kochi biogas plant.
Mega Refinery Project in Ramayapatnam
The proposed Ramayapatnam refinery, with a capacity of 9–12 million tonnes per annum (MTPA), will be a major pillar of India’s downstream oil and petrochemical expansion, BPCL said in a statement.
Under the MoU, OIL may take a minority stake in the upcoming joint venture. The Andhra Pradesh government has already allotted 6,000 acres of land for the project and granted key statutory clearances, with pre-construction work currently underway.
“By joining hands with OIL, we are combining complementary strengths to create a project of strategic scale and sustainability,” said Sanjay Khanna, Chairman and Managing Director of BPCL. “The Ramayapatnam complex will enhance BPCL’s portfolio and strengthen India’s self-reliance in fuels and petrochemicals, aligned with the vision of Atmanirbhar Bharat.”
Ranjit Rath, CMD of Oil India and Chairman of NRL, added, “This collaboration reaffirms our commitment to diversify into midstream and downstream sectors. Together, BPCL, OIL, and NRL will contribute to India’s energy security and distribution infrastructure.”
700-km Cross-Country Pipeline
The three companies will also develop a 700-km product pipeline connecting Siliguri (West Bengal) to Mughalsarai (Uttar Pradesh) via Muzaffarpur (Bihar).
Designed to carry motor spirit, high-speed diesel, and aviation turbine fuel (ATF), the pipeline will be jointly owned by BPCL (50%), with OIL and NRL sharing the remaining 50%.
The project will also include capacity upgrades at BPCL’s Mughalsarai and Muzaffarpur depots and the creation of new storage terminals in Singrauli (Madhya Pradesh), Korba (Chhattisgarh), Khagaria (Bihar), and Tatanagar (Jharkhand) to strengthen downstream logistics.
Green Push with FACT Collaboration
BPCL’s tie-up with FACT aims to market fermented organic manure (FOM) and liquid fermented organic manure (LFOM) from BPCL’s upcoming compressed biogas (CBG) plant at Brahmapuram, near the Kochi refinery.
The waste-to-energy facility will process 150 tonnes of municipal solid waste per day, generating 5.6 tonnes of CBG, 28 tonnes of FOM, and 100 kilolitres of LFOM daily.
This partnership will help FACT distribute high-quality organic fertilisers, supporting sustainable agriculture and advancing India’s green energy and waste-to-wealth mission.
