BPCL Secures Financial Closure for Bina Refinery Expansion.

State-run Bharat Petroleum Corporation Limited (BPCL) announced recently that it has successfully achieved financial closure for its Bina Refinery Expansion cum Petrochemical Project. The milestone was reached with the signing of a loan agreement worth ₹31,802 crore, secured from a consortium of six lenders led by the State Bank of India (SBI).

The ambitious project, estimated to cost ₹48,926 crore, aims to establish a petrochemical complex featuring a 1.2 million tonnes per annum (MTPA) ethylene cracker unit while increasing the refinery’s capacity from 7.8 MTPA to 11 MTPA. This expansion will enable BPCL to produce key downstream petrochemical products such as Linear Low-Density Polyethylene (LLDPE), High-Density Polyethylene (HDPE), Polypropylene (PP), and other aromatics, significantly reducing India’s dependence on imports.

The foundation stone for the project was laid by Prime Minister Narendra Modi on September 15, 2023. Once operational, the project is expected to have a transformative impact on employment in the region. During its construction phase, it is projected to generate over 15,000 jobs, and post-commissioning, it will create more than 1 lakh direct and indirect employment opportunities, boosting the local economy and supporting sustainable livelihoods.

“Upon completion, it will mark a significant milestone towards attaining Atma Nirbharata in petrochemical products and enhancing the energy security of the nation,” said G. Krishnakumar, Chairman and Managing Director of BPCL.

State Bank of India Chairman Sreenivasulu Setty added, “The financial closure of this ₹31,802 crore credit facility, with SBI as the Lead Bank, is yet another example of how our partnership continues to be mutually beneficial for both the organizations and the nation at large. I look forward to many more successful partnerships with BPCL in the future.”

HBL