BPCL gets nod for petrochemical expansion in Madhya Pradesh
Bharat Petroleum Corp Ltd (BPCL) has received approval from the Madhya Pradesh government to proceed with its petrochemical complex expansion plan at Bina. The investment is estimated at USD 5-6 billion.
India-based Bharat Petroleum Corp Ltd (BPCL) plans to invest approximately USD 5 billion to USD 6 billion in expanding its Bina refinery and constructing a petrochemical complex in the central state of Madhya Pradesh.
The company has secured the necessary approvals for the project from the Madhya Pradesh state government, as stated in a regulatory filing to the Bombay Stock Exchange.
The planned petrochemical complex is expected to produce a range of products, including polypropylene (PP), linear low-density polyethylene (LLDPE), high-density polyethylene (HDPE), and benzene. BPCL anticipates the project will be commissioned by the fiscal year ending March 2028.
This expansion is a key part of BPCL's strategy to diversify its business and increase the contribution of petrochemicals to about 8% of its revenue, up from the current 1%. The company also aims to increase the Bina refinery's processing capacity from 7.8 million tonnes per year to 12 million tonnes per year.
The proposed complex will include an ethylene cracker with a capacity of 1.2 million tonnes per year, a polypropylene unit with a capacity of 650,000 tonnes per year, and other associated production units. BPCL has a broader strategic goal to achieve net-zero emissions by 2040.