Published: 27 October 2025Business StandardEconomy
BPCL and Oil India Sign ₹1 Lakh Crore MoU for Greenfield Refinery at Ramayapatnam, AP
AQuick answer
BPCL-OIL signed ₹1 lakh crore MoU for greenfield refinery at Ramayapatnam, AP; southern India's first ethylene cracker.
Key facts
BPCL and Oil India Limited signed MoU on October 28, 2025 for greenfield refinery and petrochemical complex at Ramayapatnam Port, Nellore district, Andhra Pradesh
Estimated investment of ₹1 lakh crore (USD 11 billion) with 9-12 MTPA refinery capacity
Will include 1.5 million tonnes/year ethylene cracker unit — first in southern India — with 35% petrochemical intensity
Andhra Pradesh allotted 6,000 acres with up to 75% capital expenditure incentives over 20 years
Operations expected by 2029-30
Bharat Petroleum Corporation Limited (BPCL) and Oil India Limited (OIL) signed a non-binding MoU on October 28, 2025, to develop a greenfield refinery and petrochemical complex at Ramayapatnam Port, Nellore district, Andhra Pradesh, with an estimated investment of ₹1 lakh crore (USD 11 billion).
The complex will feature a 9-12 MTPA refinery with a 1.5 million tonnes/year ethylene cracker unit — the first in southern India — with 35% petrochemical intensity. AP allotted 6,000 acres of land to BPCL with up to 75% capital expenditure incentives over 20 years. Operations are expected by 2029-30.
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Mains angle
Q: BPCL and Oil India signed an MoU for a ₹1 lakh crore greenfield refinery at Ramayapatnam in Andhra Pradesh. Discuss the strategic importance of refinery-cum-petrochemical complexes for India's energy security.
Answer (50 words):
BPCL and Oil India Limited signed a non-binding MoU on October 28, 2025, for a ₹1 lakh crore greenfield refinery and petrochemical complex at Ramayapatnam Port in Nellore district, Andhra Pradesh. The 9-12 MTPA refinery will feature southern India's first 1.5 MTPA ethylene cracker, operational by 2029-30.
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Linked questionMedium
BPCL and Oil India signed an MoU in October 2025 to develop a greenfield refinery at which location?
Explanation · Correct answer B
BPCL and Oil India signed an MoU to develop a greenfield refinery and petrochemical complex at Ramayapatnam Port, Nellore district, Andhra Pradesh, with an estimated investment of ₹1 lakh crore.
What is the BPCL Oil India Ramayapatnam refinery MoU about?
**BPCL and Oil India Limited (OIL)** signed a non-binding **MoU on October 28, 2025** to develop a **greenfield refinery and petrochemical complex at Ramayapatnam Port, Nellore district, Andhra Pradesh**, with an estimated investment of **₹1 lakh crore (USD 11 billion)**.
Where is Ramayapatnam refinery being built?
The **BPCL-OIL greenfield refinery** is planned at **Ramayapatnam Port, Nellore district, Andhra Pradesh**. The state allotted **6,000 acres** of land with up to **75% capital expenditure incentives** over 20 years.
What is the capacity of BPCL refinery at Ramayapatnam?
The **BPCL-OIL Ramayapatnam refinery** will have a capacity of **9-12 MTPA** with a **1.5 million tonnes/year ethylene cracker unit** — the first in southern India — and **35% petrochemical intensity**. Operations are expected by **2029-30**.
What is an ethylene cracker and why is BPCL's Ramayapatnam one significant?
An **ethylene cracker** converts petroleum naphtha into **ethylene**, a key petrochemical feedstock for plastics. BPCL's **1.5 MT/year ethylene cracker** at Ramayapatnam would be the **first in southern India**, meeting the region's growing petrochemical demand.
What incentives did Andhra Pradesh offer for BPCL Ramayapatnam refinery?
**Andhra Pradesh** allotted **6,000 acres of land** to BPCL for the Ramayapatnam refinery with **up to 75% capital expenditure incentives over 20 years**, making it one of the most generous state industrial investment packages.
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