Bharat Petroleum Corporation Limited (BPCL), a Maharatna energy leader, has finalized a loan agreement amounting to ₹81,802 crore with a consortium of six lenders led by the State Bank of India (SBI) to fund its ₹49,926 crore Bina Refinery Expansion and Petrochemical Project.

Source: Energy Economictimes

This initiative involves the construction of a 1.2 million metric tonnes per annum (MMTPA) ethylene cracker unit and aims to expand the refinery's capacity from 7.8 MMTPA to 11 MMTPA. It is expected to significantly lessen India's reliance on imports by producing downstream petrochemical products such as Linear Low-Density Polyethylene (LLDPE), High-Density Polyethylene (HDPE), and Polypropylene (PP).

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

Throughout its construction phase, the project is projected to create over 15,000 job opportunities, and once operational, it will provide more than 100,000 direct and indirect jobs, thus stimulating the local economy.

State Bank of India is proud to partner with BPCL in its endeavor to enhance India's energy security through the setting up of a world-scale petrochemicals complex and the brownfield expansion of its refinery capacity at Bina, Madhya Pradesh,". "The financial closure of this ü1,802 crore credit facility, with SBI as the lead bank, demonstrates our continued commitment to supporting critical national projects.

Prime Minister Narendra Modi laid the foundation stone for this venture on September 15, 2023.

This project represents a crucial milestone in India's pursuit of self-sufficiency in polymer products and aims to strengthen energy security while promoting industrial growth and infrastructure development.