"BPCL Plans ₹36,000 Crore Capex Investment by FY26"

State-owned Bharat Petroleum Corporation Limited (BPCL) is set to allocate up to ₹36,000 crore towards capital expenditure (capex) over the next two fiscal years, culminating in FY26, with a significant emphasis on enhancing its refineries, marketing endeavors, and petrochemical ventures.

The oil marketing giant is poised to disburse approximately ₹15,000-16,000 crore in the ongoing fiscal year and an estimated ₹16,000-20,000 crore in FY26, underscoring its commitment to bolstering its operational infrastructure.

This substantial investment is a pivotal component of BPCL's ambitious Project Aspire initiative, envisaging a total investment of ₹1.7 lakh crore until FY29. This endeavor aims to augment refining capacity to 45 million tonnes per annum (mtpa) and facilitate the establishment of 4,000 new fuel stations, among other strategic objectives.

Speaking during an investor call, BPCL's top management delineated the allocation of funds, earmarking significant portions for refinery and petrochemical projects, marketing initiatives including city gas distribution (CGD), and equity infusion in BPRL (Bharat Petro Resources Limited).

Looking ahead, major capex disbursements are anticipated from FY28 onwards, particularly towards expanding the Bina refinery. Overall, the envisaged capex outlay stands at approximately ₹1.7 lakh crore over a span of 5-5.5 years commencing from FY24, with a primary focus on augmenting the Bina refinery's capacity.

Of the total capex commitment, BPCL is set to channel ₹75,000 crore towards refining and petrochemical ventures, with an additional allocation for strategic pipeline projects. Notably, refinery capacity enhancements are slated for the Bina, Kochi, and Mumbai refineries.

Moreover, substantial investments are earmarked for BPCL's marketing endeavors, upstream production projects in Mozambique and Brazil, as well as forays into the gas and renewable energy sectors.

BPCL's robust domestic market sales growth, coupled with strategic expansions in its fuel retail network and endeavors in the electric vehicle (EV) charging infrastructure, underscore its commitment to sustainability and market leadership in the evolving energy landscape.

Furthermore, BPCL's forward-looking initiatives encompass the establishment of compressed biogas (CBG) plants, green hydrogen production facilities, and a burgeoning EV charging network, exemplifying its proactive stance towards renewable energy adoption and environmental stewardship.

HBL