NEW DELHI, Jan. 17, 2025 /PRNewswire/ -- Bharat Petroleum Corporation Limited (BPCL), a Maharatna Energy Major, has achieved the financial closure for its Bina Refinery Expansion cum Petrochemical Project by signing a loan agreement of ₹31,802 crore with a consortium of six lenders led by the State Bank of India.

The project, estimated to cost ₹48,926 crore, aims to set up a petrochemical complex comprising a 1.2 million metric tonnes per annum (MMTPA) ethylene cracker unit and increase the refinery's capacity from 7.8 MMTPA to 11 MMTPA. This expansion will enable BPCL to produce downstream petrochemical products, such as Linear Low-Density Polyethylene (LLDPE), High Density Polyethylene (HDPE), Polypropylene (PP) and other aromatics, thereby reducing India's dependence on imports.

The project, which had its foundation stone laid by Hon'ble Prime Minister Shri Narendra Modi on September 15, 2023, is poised to create a significant impact on employment in the region. During its construction phase, the project is expected to generate over 15,000 employment opportunities, while post-commissioning, it will create more than 1 lakh direct and indirect employments. This will not only boost the local economy but also provide sustainable livelihood opportunities for the people in the region.

The project aligns with India's broader strategy to boost industrial growth, infrastructure development, and increased industrial activity. Upon completion, it will mark a significant milestone towards attaining self-sufficiency in polymer products and enhancing energy security of the nation.

"We are delighted to achieve financial closure for our Bina Refinery Expansion cum Petrochemical Project, which aligns with India's broader strategy to boost industrial growth, infrastructure development, and increased industrial activity," said Shri G. Krishnakumar, Chairman & Managing Director, BPCL. "Upon completion, it will mark a significant milestone towards attaining Atma Nirbharata in petrochemical products and enhancing the energy security of the nation." "State Bank of India is proud to partner with BPCL, in its endeavour to enhance India's energy security through the setting up of a world-scale petrochemicals complex and brownfield expansion of its Refinery capacity at Bina, Madhya Pradesh," said Shri Challa Sreenivasulu Setty, Chairman, State Bank of India. "The financial closure of this Rs 31,802 Crores credit facility, with SBI as the Lead Bank, is yet another example of how our partnership continues to be mutually beneficial for both the organisations and the nation at large. I look forward to many more successful partnerships with BPCL in the future." About Bharat Petroleum Corporation Ltd. (BPCL) Fortune Global 500 Company Bharat Petroleum is the second largest Indian Oil Marketing Company and one of the integrated energy companies in India, engaged in the refining of crude oil and marketing of petroleum products, with presence in the upstream and downstream sectors of the oil and gas industry. The company attained the coveted Maharatna status, joining the club of companies having greater operational & financial autonomy.

Bharat Petroleum's Refineries at Mumbai, Kochi and Bina have a combined refining capacity of around 35.3 MMTPA. Its marketing infrastructure includes a network of installations, depots, fuel stations, aviation service stations and LPG distributors. Its distribution network comprises over 22,000+ Fuel Stations, over 6,250 LPG distributorships, 525 Lubes distributorships, 123 POL storage locations, 54 LPG Bottling Plants, 63 Aviation Service Stations, 5 Lube blending plants and 4 cross-country pipelines as on 31.08.2024.

Bharat Petroleum is integrating its strategy, investments, environmental and social ambitions to move towards a sustainable planet. The company has chalked out the plan to offer electric vehicle charging stations at around 7000 Fuel Stations over the next 5 years.

With a focus on sustainable solutions, the company is developing an ecosystem and a road-map to become a Net Zero Energy Company by 2040, in Scope 1 and Scope 2 emissions. Bharat Petroleum has been partnering with communities by supporting several initiatives connected primarily in the areas of education, water conservation, skill development, health, community development, capacity building and employee volunteering. With 'Energising Lives' as its core purpose, Bharat Petroleum's vision is to be an admired global energy company leveraging talent, innovation & technology.

(Disclaimer: The above press release comes to you under an arrangement with PRNewswire and PTI takes no editorial responsibility for the same.). PTI PWR PWR

Financial closure for refinery-petrochemical project secures project financing to advance petrochemical integration and energy security. The announcement records the financial closure of a refinery expansion cum petrochemical project by way of a loan agreement with a consortium led by a lead bank, securing project financing to expand refinery capacity, install an ethylene cracker and downstream polymer production, and thereby enable implementation of the brownfield expansion under the agreed commercial funding arrangements.