NEW DELHI (Reuters) -India’s state-run Bharat Petroleum Corp will invest nearly $11 billion to build a new 180,000–240,000 barrels-per-day refinery in the southern state of Andhra Pradesh, a state government order said on Thursday.
The order said the government has allocated 6,000 acres for a refinery and petrochemicals project costing about 968.62 billion rupees and asked BPCL to begin commercial operations by January 2029.
Andhra Pradesh, ruled by Prime Minister Narendra Modi’s key ally Chandrababu Naidu, is seeking investment to ease financial strains from high debt and social spending.
Over 20 years, the state will provide financial incentives to BPCL equal to 75% of the project’s estimated capital expenditure, according to the order.
BPCL is India’s second-biggest state refiner, with 706,000 barrels per day of crude capacity across three refineries.
($1 = 88.7790 Indian rupees)
(Reporting by Nidhi Verma; Editing by Tasim Zahid)
