BPCL secures funding for Bina Refinery expansion
Bharat Petroleum Corporation Limited (BPCL), one of India’s leading energy companies, has achieved financial closure for its ambitious Bina Refinery Expansion and Petrochemical Project. A INR31,802 crore (USD3.69 billion) loan agreement was signed with a consortium of six lenders led by the State Bank of India (SBI), securing the financial foundation for the INR48,926 crore (USD5.68 billion) project.
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. Bharat Petroleum’s Refineries in Mumbai, Kochi and Bina have a combined refining capacity of around 35.3 million metric tonnes per annum (MMTPA).
The Bina Refinery in Madhya Pradesh has an installed capacity of 7.8 MMTPA. BPCL plans to expand this capacity to 11.3 MMTPA by May 2028. It also includes the establishment of a 1.2 MMTPA ethylene cracker unit to produce key petrochemical products such as linear low-density polyethylene (LLDPE), high-density polyethylene (HDPE), polypropylene (PP), and other aromatics. This development aims to reduce India’s dependence on imports and enhance its self-reliance in polymer production.
The construction phase is expected to generate more than 15,000 jobs, with more than 100,000 direct and indirect employment opportunities anticipated post-commissioning. BPCL’s Chairman and Managing Director, Shri G. Krishnakumar, described the project as a pivotal step in India’s journey toward industrial growth and energy security, aligning with the government’s Atma Nirbhar Bharat vision.
“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,” he said.
“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.
Upon completion, the project will cement BPCL’s role as a leader in the energy sector, contributing to India’s economic growth while integrating sustainability and innovation.
