Andhra Pradesh will host a ₹60,000-crore oil refinery and petrochemical hub at Ramayapatnam, fulfilling a 2014 bifurcation promise. Developed by BPCL on 1,000 acres, the project secures access to a captive jetty at Ramayapatnam port.
Image Source: Freepik
Andhra Pradesh is set to establish an oil refinery and petrochemical hub in Ramayapatnam, Nellore district, with an investment of ₹60,000 crore, fulfilling a commitment made during the state’s bifurcation in 2014. This development provides a significant boost for Chief Minister N. Chandrababu Naidu.
Bharat Petroleum Corp. Ltd (BPCL) will develop the refinery and hub on 1,000 acres of land, according to sources familiar with the matter. As reported earlier by ET on July 11, the state government proposed three potential locations—Srikakulam, Machilipatnam, and Ramayapatnam—for BPCL’s consideration.
Following a meeting with BPCL’s senior leadership in July, Naidu directed detailed feasibility studies for the three locations. Sources indicate Ramayapatnam was deemed the most suitable site for the project, partly due to BPCL’s access to a captive jetty at Ramayapatnam port. An official announcement is expected by the end of the month.
The refinery project marks a significant achievement for Naidu, whose Telugu Desam Party (TDP) plays a vital role in supporting the BJP-led National Democratic Alliance (NDA) at the Centre. The initiative was a top priority during Naidu’s meeting with the Prime Minister on July 5, shortly after assuming office as chief minister.
Within days of this meeting, a BPCL delegation met Naidu in Vijayawada to advance discussions on the project. By delivering on this decade-old promise, Naidu underscores his growing political influence after the recent general elections.
The commitment to the refinery is part of the Andhra Pradesh Reorganisation Act, 2014. Section 93 of the Act mandates the Centre to “take all necessary measures as enumerated in the Thirteenth Schedule for the progress and sustainable development of the successor states within a period of 10 years from the appointed day.”
The fourth point under the “infrastructure” section of the Thirteenth Schedule specifies, “IOC or HPCL shall, within six months from the appointed day, examine the feasibility of establishing a greenfield crude oil refinery and petrochemical complex in the successor state of Andhra Pradesh and take an expeditious decision thereon.” BPCL, along with Indian Oil Corporation and Hindustan Petroleum Corporation Ltd, is a state-run refining company.
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