CORPORATEBPCL announces ₹49,000 cr capex for Bina refinery expansion; stock dips

BPCL announces ₹49,000 cr capex for Bina refinery expansion; stock dips

Bharat Petroleum Corporation Ltd (BPCL) shares fell 0.10% to 364.35 on the BSE on Thursday after the company announced capital expenditure plans worth 49,000 crore for expanding its footprints in the petrochemical segment and renewable energy in Madhya Pradesh’s Bina refinery.

BPCL, one of India’s leading oil refining and marketing firms, saw its stock open gap higher today at 364.80. It had an intraday high of 365.25 and is now trading at 364.20. BPCL’s m-cap is 79,047.57 crore at the current share price.

According to the corporation, the ethylene cracker project, which will drive the production of vital petrochemicals, is the main component of the growth initiatives.

The project will include the construction of an ethylene cracker (EC) complex, downstream petrochemical units, and the extension of Bina Refinery’s existing refinery capacity from 7.8 MMTPA to 11 MMTPA, as well as ancillary infrastructure.

According to the firm, the development of the Bina refinery is targeted at satisfying the expanding demand for petroleum products in central and northern India. It will also offer necessary feedstock to the EC complex, and the petrochemical plant will serve to the growing domestic demand.

Bina refinery

According to G Krishnakumar, chairman and MD of BPCL, the company’s 49,000 ethylene cracker project in Bina refinery would meet the country’s expanding need for energy and petrochemical products.

“We are steadfast in aligning our strategic imperatives with the government’s Atmanirbhar Bharat mission to make India a self-sufficient and globally competitive petrochemical powerhouse.” These game-changing projects will create jobs and strengthen our sustainable energy capabilities, ushering us closer to a secure and net-zero future.”

To increase its renewable energy footprint, BPCL plans to build two 50 MW wind power plants in Madhya Pradesh and Maharashtra for captive use at the Bina and Mumbai refineries, respectively. “With a total project cost of approximately 978 crore (489 crore for each project), these wind power plants will contribute to a greener and more eco-friendly operation.”

Furthermore, Bharat Petroleum is investing in petroleum oil lubricants and lube oil base stock (LOBS) systems, with receipt pipelines at Rasayani in Maharashtra. The project, which is expected to cost roughly Rs. 2,753 crore, intends to increase storage capacity, smoothen the supply chain, and streamline the distribution of vital petroleum products.

The Board of Directors of Bharat Petroleum Corporation will meet on Monday to discuss and approve the financial results for the quarter and fiscal year ending March 31, 2023, as well as the recommendation of dividends for FY23.

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