Bharat Petroleum Corporation Limited (BPCL) has appointed SBI Capital Markets to secure Rs 31,000 crore loan for its ambitious expansion project at the Bina refinery complex in Madhya Pradesh, according to a report by The Economic Times. This capital will be used for planned capital expenditures aimed at significantly enhancing the refinery’s capacity and capabilities.
The expansion project is a strategic move to address global refining capacity shortages that have emerged due to the shutdown of unviable refineries post Covid-19. In addition to increasing crude processing capacity, the capital expenditure plan includes the establishment of an ethane cracker unit. This unit will break down natural gas to produce ethylene, a key industrial chemical used in plastics manufacturing. This development is expected to stimulate downstream industries in plastics and packaging in Madhya Pradesh.
The total project cost is estimated at just under Rs 50,000 crore. The loan, which is expected to be syndicated among several local banks and financial institutions, will have a tenor of 15 years. The remainder of the project cost will be covered by BPCL through equity infusions.
