State-run Bharat Petroleum Corporation (BPCL) on Wednesday said it will set up an ethylene cracker project at Bina in Sagar district, Madhya Pradesh, and expand its refinery capacity with a capital expenditure of around Rs 49,000 crore.
The core component of the expansion project is the ethylene cracker, which will drive the production of essential petrochemicals. The project also encompasses the establishment of an ethylene cracker (EC) complex and downstream petrochemical plants, the public sector undertaking said.
It includes expanding the refining capacity from 7.8 million tonnes per annum (MTPA) to 11 MTPA and associated facilities at Bina refinery. The initiative marks a significant milestone for BPCL and the energy sector as a whole, it added.
Bina refinery’s expansion will meet the growing demand for petroleum products in central and northern India while also providing feedstock to the EC complex. The petrochemical plant will cater to the growing domestic demand for petrochemical products.
BPCL CMD G Krishnakumar said, “Combined with our investment in wind energy and new-age petroleum oil lubricants installations built for sustainable processes, this is a watershed moment in our strategic endeavour to be at the forefront in meeting the rapidly growing demand for energy and petrochemical products in India.”
These future-defining projects will generate employment opportunities and bolster BPCL’s sustainable energy capabilities in a step towards a secure and net-zero future, he added.
In the endeavour to enhance its renewable energy footprint, the oil marketing company (OMC) will set up two 50 megawatt (MW) wind power plants in Madhya Pradesh and Maharashtra for captive consumption at Bina and Mumbai Refineries, respectively. At a cost of around Rs 978 crore (Rs 489 crore for each project), these wind power plants will contribute to eco-friendly operation, the company said.
Furthermore, BPCL is making significant investments in petroleum oil lubricants and lube oil base stock installations with receipt pipelines at Rasayani in Maharashtra. This project, at an estimated cost of Rs 2,753 crore, aims to augment storage capacity, smoothen the supply chain, and streamline the distribution of essential petroleum products.
The expansion project at Bina refinery and other initiatives demonstrate BPCL’s dedication to meet the evolving energy needs of the nation and ensure energy security and sustainability, the company said. These investments will not only strengthen the company’s position in the petrochemical industry but also contribute to the economic growth and development of the regions where the projects are based.
The expansion project aligns with Bharat Petroleum’s vision to diversify and expand in adjacent and alternative businesses to create additional revenue streams and cleaner environment by building the renewable energy portfolio to achieve net-zero targets in Scope 1 and Scope 2 emissions.