State-run Bharat Petroleum Corporation (BPCL) plans to establish a new 12 million metric tonnes per annum (MMTPA) refinery in India, as reported by two industry officials. This project will involve an investment of approximately Rs 50,000 crore. BPCL is evaluating potential locations in three states: Andhra Pradesh, Uttar Pradesh, and Gujarat.

"BPCL is planning another refinery either on the east coast or on the west coast as India needs more refineries to meet the increasing fuel demand," one official noted, adding that talks are still preliminary. The company may also consider Uttar Pradesh as a potential location.

BPCL's chairman, G Krishnakumar, recently mentioned the company's intention to expand its refining capacity to 45 MMTPA by FY29. Currently, BPCL operates three refineries in Mumbai, Kochi, and Bina (in Madhya Pradesh), with a combined annual refining capacity of about 36 MMTPA.

The company has announced plans to invest around Rs 1.7 lakh crore over the next five years across its core oil refining, fuel marketing, and petrochemical businesses, as well as in the clean energy sector. Out of this total capital expenditure, Rs 75,000 crore is allocated for refineries and petrochemical projects, Rs 8,000 crore for pipeline projects, and more than Rs 20,000 crore for its marketing business.

The push for a new refinery arises partly because a proposed plan to establish a 60-MMTPA integrated refinery and petrochemicals complex on the west coast of Maharashtra did not materialize. The government initially proposed this project in 2015, intending to build Asia's largest refinery in Ratnagiri, Maharashtra, at an estimated cost of Rs 3 lakh crore to cater to the country's growing demand for fuel and petrochemicals.