NELLORE: Andhra Pradesh is set to lay the foundation stone for the BPCL greenfield refinery and petrochemical complex this month, with land acquisition for the Rs 1 lakh crore project on the verge of completion.
Of the 6,000 acres required for the project near Ramayapatnam port, 4,500 acres have already been acquired. The remaining 1,500 acres are expected to be secured within the next month, with an additional 3,000 acres being earmarked for ancillary industries that will develop around the complex.
The project in its broader national context, describing the complex designed to process between 9 and 12 million metric tonnes per annum - as among the largest downstream energy investments the country has seen in recent years. Commercial operations are targeted by the turn of the decade.
“To bring BPCL to the table, Chief Minister N Chandrababu Naidu government has put together an incentive architecture of unusual generosity. The State has committed to covering up to 75 per cent of the project’s capital expenditure over a 20-year operational period through a 43.5 per cent direct capital subsidy distributed across 15 instalments, full GST refunds on both state and central components, and a waiver exceeding Rs 20 crore in stamp duties and registration fees on early land transactions,” Nellore MP Vemireddy Prabhakar Reddy said.
The returns are projected to be substantial.
Financial modelling indicates the facility will contribute an estimated Rs 87,558 crore to the State exchequer across its first 15 years of operation, providing the government a meaningful fiscal cushion to pursue development and welfare commitments across the region.
The project is expected to generate roughly 3,400 jobs during peak construction, followed by 3,750 direct operational roles once the complex goes live.
According to reliable sources, the State government has been making efforts to invite Prime Minister Narendra Modi for the ground breaking ceremony.