Bharat Petroleum Corporation Limited (BPCL) has reached a financial milestone for its Bina Refinery expansion and petrochemical project, securing a loan agreement of Rs318bn ($3.67bn).

This financial closure was achieved with the support of a consortium led by the State Bank of India.

Located in Madhya Pradesh, India, the Bina Refinery was established in 1994 to cater to demand for petroleum products.

The total cost of the expansion project is estimated to be Rs489.26bn. It will include the construction of a 1.2 million tonnes per annum (mtpa) ethylene cracker unit and increase the refinery's capacity from 7.8mtpa to 11mtpa.

The initiative is set to bolster BPCL's ability to produce a range of downstream petrochemical products including linear low-density polyethylene, high-density polyethylene, polypropylene and other aromatics.

BPCL chairman and managing director G. Krishnakumar said: "We are delighted to achieve financial closure for our Bina Refinery expansion cum petrochemical project, which aligns with India's broader strategy to boost industrial growth, infrastructure development and increased industrial activity.

“Upon completion, it will mark a significant milestone towards attaining Atma Nirbharata in petrochemical products and enhancing the energy security of the nation.”

The foundation stone for the project was laid on 15 September 2023, signalling a boost for the local employment landscape.

More than 15,000 jobs are expected to be created during the construction phase, with more than 100,000 direct and indirect employment opportunities arising post-commissioning.

The project is in line with India's strategic goals of enhancing industrial growth and infrastructure development.

It is set to contribute to the country's self-sufficiency in polymer products and improve national energy security.

State Bank of India chairman Challa Sreenivasulu Setty added: "State Bank of India is proud to partner with BPCL in its endeavour to enhance India's energy security through the setting up of a world-scale petrochemicals complex and brownfield expansion of its refinery capacity at Bina, Madhya Pradesh.

"The financial closure of this Rs318bn credit facility, with SBI as the Lead Bank, is yet another example of how our partnership continues to be mutually beneficial for both the organisations and the nation at large."