Bharat Petroleum Corp. Ltd (BPCL) will establish the refinery and hub on 1,000 acres of land, said people with knowledge of the matter. As first reported by ET on July 11, the state government had offered three locations to BPCL — Srikakulam, Machilipatnam and Ramayapatnam.
After a meeting with the BPCL’s senior leadership in July, Naidu had ordered detailed feasibility studies for the three sites. A formal announcement is likely to be made by the end of the month, said the people cited above.
Ramayapatnam has been found to be the most suited for the project, said the people cited. BPCL will have access to a captive jetty at Ramayapatnam port for its requirements.
Growing Political Clout
BPCL didn’t respond to ET’s queries. Andhra Pradesh industries minister TG Bharath declined to comment. “The announcement is likely to be around the time of the foundation stone laying ceremony of NTPC’s green hydrogen hub at Pudimadaka near Vizag,” said a senior state government official. Naidu had last week invited Prime Minister Narendra Modi for that ceremony.
The refinery project is a big win for Naidu, whose Telugu Desam Party (TDP) provides crucial support to the Bharatiya Janata Party-led National Democratic Alliance (NDA) government at the Centre. It headed Naidu’s agenda when he met the Prime Minister on his first visit to New Delhi on July 5 after being sworn in as chief minister.
Within five days of this meeting, a BPCL team met Naidu in Vijaywada to discuss the project. Naidu has effectively delivered on a decadeold pledge that didn’t come to fruition under previous governments, including his own, reflecting the chief minister’s increased political heft after the general elections earlier this year.
The refinery commitment was included in the Andhra Pradesh Reorganisation Act, 2014.
The Centre “shall 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,” according to Section 93 of the Act.
The fourth point under the “infrastructure” head of the Thirteenth Schedule says, “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.”
Indian Oil Corporation, Hindustan Petroleum Corporation Ltd and BPCL are state-run refining companies.
