Bharat Petroleum Corporation Ltd (BPCL) has received the Madhya Pradesh government’s approval to expand the Bina refinery and set up a petrochemical project there.

The Bina refinery, located at Bina Etawa in Madhya Pradesh’s Sagar district, was founded in 2011 and is one of the major refineries operated by BPCL. The Madhya Pradesh Investment Promotion Committee, headed by Chief Minister Shivraj Singh Chouhan, approved the revised proposal of Rs 43,000 crore to Rs 50,000 crore for the expansion of the Bina Refinery of Bharat Petroleum Corporation Limited (BPCL) and setting up of a petrochemical project at a meeting held in the Secretariat on April 11. Additionally, the committee also approved the investment of Rs 150 crore in the Mohasa-Babai industrial area, according to the official.

The state government said that the establishment of the petrochemical project will generate jobs for around 2,000 people, adding that the production is likely to begin from 2027-28. The project will produce petroleum by-products such as gasoline, diesel, aviation turbine fuel, jet fuel, Linear Low-Density Polyethylene, High-Density Polyethylene, bitumen, and benzene. Several downstream Micro, Small and Medium Enterprises (MSMEs) will be set up for feedstock availability.

Shares of BPCL closed at Rs 332.15 on the BSE on April 13, down 1.44% from the previous day’s close. In the third quarter of the 2022-23 financial year, the state-run fuel company posted a 37% drop in net profit to Rs 1,747 crore.
The release said the petrochemical unit would make petroleum by-products such as gasoline, diesel, ATF/jet fuel, LLDPE, HDPE polypropylene, bitumen, and benzene.