Soon after Andhra Pradesh Chief Minister N. Chandrababu Naidu met with Prime Minister Narendra M, the central government decided to invest ₹60,000 crore to build an oil refinery and petrochemical hub in the state.

Naidu, an important ally in the National Democratic Alliance (NDA) government, met officials from Bharat Petroleum Corporation Limited (BPCL) on Wednesday to discuss the feasibility of establishment of a refinery.

Srikakulam, Machilipatnam, and Ramayapatnam locations were considered for establishing the refinery and the announcement is expected to be made during the 2024 Budget session.

The locations will be assessed and finalised within two months, so the exact location may not be announced in the budget.

This is a significant achievement for Naidu, who has been advocating for the refinery in his meetings with the Prime Minister and Petroleum Minister Hardeep Puri. Chandrabab Naidu's 16 MPs have become pivotal for the BJP-led NDA government.

However, Naidu has made it clear that he prioritises the interests of his state and is not willing to create conflicts over any demands.

Chandrababau Naidu took toX, formerly known as Twitter, to share the news with people of Andhra.

“Strategically placed on the eastern coast of the country, our state has a significant petrochemical potential. Today, I met with the representatives of the Bharat Petroleum Corporation Limited led by Chairman and Managing Director, Mr Krishna Kumar. We explored the establishment of an oil refinery and petrochemical complex in Andhra Pradesh with an investment of 60-70,000 Cr. I have sought a detailed plan and feasibility report in 90 days. About 5,000 acres of land will be required for this project, which the government looks forward to facilitating in a hassle-free manner,” he wrote on X.