BPCL Raises Rs 31,802 Cr Loan For Bina Refinery Expansion

New Delhi: State-owned Bharat Petroleum Corporation Ltd (BPCL) on Friday said it has achieved financial closure for its Bina refinery expansion cum petrochemical project with the signing of a loan agreement of Rs31,802 crore with a consortium of six lenders led by the State Bank of India.

The project, estimated to cost Rs 48,926 crore, aims to set up a petrochemical complex comprising a 1.2 million tonnes per annum (MTPA) ethylene cracker unit and increase the refinery’s capacity from 7.8 MTPA to 11 million tonnes. “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 company said in a statement.

The expansion project aims to cater to the projected rising demand for fuel in central and northern India in the near future. The project construction is expected to be completed within 48 months from the zero date. The project in Bina, Madhya Pradesh, whose foundation stone was laid by Prime Minister Narendra Modi on September 15, 2023, will create employment in the region.