BPCL to Build India’s Last Greenfield Refinery in Andhra Pradesh with ₹6,100 Crore Investment Amid Environmental Concerns
Bharat Petroleum Corporation Ltd (BPCL) has set its sights on constructing India’s last greenfield refinery and petrochemical complex in Andhra Pradesh, with a projected investment of ₹6,100 crore. This ambitious project, which could significantly boost the nation’s oil refining capacity, is a critical step in meeting India’s growing fuel demand. However, questions regarding its environmental impact and the possible risks to local communities are starting to emerge.
BPCL’s board of directors approved the initiation of pre-project activities for the greenfield refinery and petrochemical complex in the coastal region of Andhra Pradesh. This includes land identification, feasibility studies, environmental impact assessments, and engineering designs. The refinery is expected to have a capacity of at least nine million tonnes per year, or roughly 180,000 barrels per day. While BPCL has yet to announce a timeline for completion, the development marks a significant leap in India’s energy infrastructure.
BPCL, India’s third-largest oil refiner, currently operates refineries in Mumbai, Kochi, and Bina, but this new facility will be one of the last of its kind. The country’s oil demand is projected to grow at 4-5% annually, a trend that has spurred this expansion of refinery and petrochemical production. India’s nearly two dozen refineries produced 276.1 million tonnes of fuel in the 2023-24 fiscal year, and the addition of new refineries like BPCL’s will ensure the country can meet future energy needs well into 2040.
However, while BPCL aims to increase its production capacity, concerns from local residents in Andhra Pradesh have started to surface. The project’s location near the coast and its potential environmental impact have led to fears that chemical pollutants and emissions from the refinery could affect the surrounding ecosystem. In particular, petrochemical complexes are notorious for their hazardous waste and air pollution, which can pose health risks to local communities, as well as to wildlife and water sources.
A spokesperson for BPCL assured the public that environmental impact assessments would be carried out thoroughly, with measures put in place to mitigate any risks associated with pollution and waste management. Despite these assurances, local residents remain sceptical, with many questioning the long-term effects of such large-scale industrial projects on their health and livelihood.
“While we understand the need for infrastructure and energy projects, we are worried about the chemicals and pollution that come with them,” said Rekha Reddy, a resident of a nearby village. “What if this refinery causes damage to our farmland, or worse, makes the water undrinkable? It’s a big concern for us.”
For the government, this refinery project is part of a broader energy transition plan, with BPCL also investing heavily in renewable energy and clean technologies. The company has committed to achieving net-zero carbon emissions by 2040 and has lined up ₹1.7 lakh crore for renewable power, green hydrogen, and carbon capture initiatives. This green energy push aims to balance the increased demand for fossil fuels while also meeting climate change goals.
BPCL’s planned investments, however, are not solely focused on fossil fuel-based infrastructure. The company is simultaneously expanding into cleaner energy sources such as green hydrogen, wind, and solar power. This dual approach aims to transition India’s energy landscape while continuing to meet the growing demands of industry and transportation.
As construction of the new refinery moves forward, both the government and BPCL must carefully consider the concerns of local communities, ensuring that the project not only meets energy needs but also safeguards public health and environmental integrity. The refinery’s impact on the local population will ultimately depend on how well the project is managed, with transparent communication and commitment to sustainable practices being key to mitigating any potential harm.
