India’s state-owned petroleum company, Bharat Petroleum (BPCL), is looking to raise around $3.8bn (Rs318.7bn) from local banks and financial institutions to expand its refinery capacity.
BPCL intends to secure the money to increase the capacity of its Bina refinery in central India’s Madhya Pradesh state, according to various local reports, citing people familiar with the matter.
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The refiner has allocated a total investment of $5.8bn to install an ethylene cracker unit at the Bina refinery, in line with the efforts of BPCL and other Indian refiners to increase their petrochemical production capacities.
The Bina complex produces key products such as ethylene, polyethylene, polypropylene and propylene.
The state-run oil company has already received expressions of interest, with the nation’s largest lender, State Bank of India, set to lead the transaction, the reports indicated.
Those expressing interest reportedly asked not to be identified because the deliberations are private, said a local news outlet.
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By GlobalDataAccording to reports, BPCL will receive the largest loan denominated in Indian rupees this year if it secures the loan from domestic banks.
India has a significant refining presence in Asia, with a total capacity of approximately 254 million tonnes (mt) per year. It holds the fourth-largest refining capacity in the world.
Local news reported that the government aims to increase crude oil refining capacity by around 56.6mt per year by 2030 by expanding existing facilities and establishing new ones.
From 2011 to 2023, India raised its refinery distillation capacity by 1.3 million barrels per day (mbbl/d), achieving a total capacity of 5.1mbbl/d by 2023. Up to 11 projects to expand its crude oil capacity are expected to be undertaken by 2028.
BPCL carries out production of oil and natural gas, refining of crude oil, and marketing and distribution of petroleum products including light distillates, middle distillates and others.
