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BPCL’s Rs 49,000-cr Bina refinery reinforces India’s commitment towards petrochemical self-reliance

14 Sep 2023 18:09 IST
Bharat Petrochemical Corporation Ltd (BPCL) is set to reinforce India’s commitment to self-reliance and sustainable industrial growth with its proposed Rs 49,000-crore refinery in Bina Sagar, Madhya Pradesh, popularly known as Bina refinery. This project will reinforce India’s commitment to self-reliance and sustainable industrial growth, positioning the nation as a global leader in the petrochemicals sector, said Hardeep Singh Puri, Union Minister of Petroleum and Natural Gas, on Thursday. He made these remarks after Prime Minister Narendra Modi laid the foundation stone and inaugurated the Bina refinery project, emphasizing the government’s efforts to reduce petrochemical imports by establishing new brownfield and greenfield projects.

This state-of-the-art downstream petrochemical complex and refinery expansion at BPCL’s Bina Refinery will produce approximately 1200 KTPA (kilo-tonnes per annum) of ethylene and propylene, crucial components of industries such as textiles, packaging, and pharmaceuticals. The project’s estimated capital expenditure is Rs 49,000 crore. It aligns with the Prime Minister’s vision of 'Atmanirbhar Bharat' and is expected to generate employment opportunities while fostering the growth of downstream industries in the petroleum sector.

In his address at the event, the Prime Minister emphasized his commitment to Madhya Pradesh’s development and improving and lives of its residents. He highlighted the government’s initiatives aimed at poverty alleviation, farmer support, and business development.

Puri noted, “This petrochemical plant is a significant contribution not only to Bina but also to the entire Bundelkhand region and Madhya Pradesh. The new petrochemical complex will stimulate various downstream units, producing plastic, packaging materials, plastic sheets, and other items for domestic and industrial use, laying the foundation for a prosperous Bundelkhand.”

OPAL’s Dahej project sets the tone
The minister referred to the recent volatility in the global oil and gas industry and cited the example of the OPAL plant, which has contributed to the development of the Dahej region of Gujarat. The Union Minister further stated that the successful execution of this project would revolutionize industrial development in Madhya Pradesh, particularly in the Bundelkhand region, and help achieve the vision of Viksit Bharat (developed India). Over the past two years, the global oil and gas industry has experienced significant volatility, leading to energy shortages not only in neighbouring countries but also in developed nations.

Conversely, due to the visionary and citizen-centric policies of the government, India is currently the only country in the world that has not faced shortages of oil and gas over the past two years. Indian citizens have been shielded from spikes in global oil and gas prices. Minister Puri highlighted the progress made in Madhya Pradesh since 2014 in various aspects of energy infrastructure.

He emphasized that the number of retail outlets/petrol pumps in the state has increased from 2,854 in 2014 to 5,938, and LPG distributorships have risen from 866 in 2014 to 1,551 today. Globally, India ranks sixth in the field of petrochemicals, with a market potential of approximately Rs 15.58 lakh crore, projected to reach Rs 82 lakh crore by 2040.

The Petroleum Ministry has proposed to complete the construction and installation of the plant and machinery within five years. The ethylene cracker complex will utilize captive feedstock such as naphtha, liquefied petroleum gas (LPG), kerosene, etc. from the Bina refinery. Once completed, this petrochemical complex will create diverse employment opportunities for young entrepreneurs in the Bundelkhand region.

The government of Madhya Pradesh has been supporting the project by providing fiscal incentives, including State Goods and Services Tax (SGST) refunds, interest-free loans, interest subsidy assistance, concessional power, and stamp duty exemptions, among others. This investment is expected to generate over 100,000 direct and indirect employment opportunities and result in foreign exchange savings of Rs 20,000 crore per annum, which India currently spends on importing various ethylene products.

In the financial year (FY) 2022-23, India imported linear low-density polyethylene (LLDPE) worth US$ 64.45 million, marking a staggering increase of over 245 percent from the average value of its imports reported at US$18.67 million between FY2017-18 and FY2021-22. The value of imports of polymers of ethylene in primary forms jumped by 174 percent to US$ 80.73 million in FY2022-23, compared to the previous five years’ annual average of US$29.45 million. Imports of other grades of polymers also experienced rapid growth in recent years.

Growth in ancillary industries
India’s Ministry of Chemicals and Fertilizers is confident that the emergence of hundreds of greenfield units in and around Bina Sagar, associated with BPCL’s Bina refinery, will automatically lead to the development of several ancillary industries. Furthermore, there will be numerous opportunities generated in downstream industries and service units.

In addition to polymers, BPCL’s Bina refinery will produce aromatics (benzene, toluene, mixed xylene, among others) from the complex, which have significant usage in downstream industries, ancillaries, and service units such as lamination films, bubble, and stretch wraps, shipping sacks, housewares, lids, shopping baskets, drip irrigation tubing, toys, etc.

Industrial products, including multilayer films, garbage bags, raffia bags, housewares, storage bins, water tanks, crates, luggage, industrial containers, pipes for gas and water, cable sheathing, etc., will also find potential around the BPCL’s current Bina refinery. Additionally, BOPP films, automobile parts, furniture, housewares, woven fabrics, jumbo bags, raffia bags, rigid packaging, food packaging, storage containers, paint pails, pipes, etc. will be preferred derivative products of the feedstock proposed to be produced at Bina complex. Production of petrochemicals or chemicals (styrene, phenol, acetone, cumene, nitrobenzene, aniline, etc.) proposed to be produced at this complex will find applications in a wide gamut of industries such as paints, pharma, and automotive sectors.

This project will catalyze industrial development in Madhya Pradesh and the entire Bundelkhand region, with easy access to petrochemical feedstock. It will enable the government’s vision of setting up a ‘Petroleum Chemicals and Petrochemicals Investment Region (PCPIR) in Madhya Pradesh, which will attract major investments in segments such as films, fibers, injection moulding, blow moulding, pipes, conduits, automobile parts, among others.


DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com