The Andhra Pradesh government has waived over ₹20 crore in stamp duty and registration fees to facilitate the establishment of a major greenfield refinery and petrochemical complex near Ramayapatnam Port in Nellore district. This significant financial incentive supports the transfer of over 600 acres of land from the state maritime authority to the state’s industrial infrastructure agency, and subsequently to Bharat Petroleum Corporation Limited (BPCL). The move is part of a larger industrial development strategy aimed at attracting substantial investment and fostering economic growth.
This 600-acre parcel is a component of a broader 6,000-acre allocation designated for the refinery and petrochemical project. The land has been provided on a cost basis as part of the state’s commitment to enhancing its industrial landscape. To further bolster the project’s investment appeal, the government has pledged long-term financial incentives in line with its industrial development policy framework. These incentives are designed to offer structured capital support over multiple years for such large-scale investments.
Bharat Petroleum Corporation Limited (BPCL), a prominent public sector energy company, is spearheading the development of this refinery and petrochemical complex. The facility is projected to have a substantial capacity, estimated between 9 and 12 million metric tonnes per annum (MMTPA). The overall investment for this ambitious project is anticipated to reach approximately ₹97,000 crore. This substantial capital will be deployed incrementally over several financial years, with planned investments expected to grow as construction and development progress.
Under the approved framework, BPCL will receive several key incentives and fiscal support measures. These include a capital subsidy designed to cover a significant percentage of the project’s overall cost, which will be disbursed in structured installments. Additionally, the company will benefit from a 100% refund of Goods and Services Tax (GST) during specified phases of the project. This refund encompasses State GST, as well as the state’s allocated share of Integrated GST and Central GST.
The exemptions from stamp duty and registration charges for land transfers directly related to the project are also a crucial part of the fiscal support package. While these waived duties represent a reduction in immediate revenue for the state, the government views this as a strategic investment. The objective is to attract large-scale industrial development and secure long-term economic benefits for Andhra Pradesh.
The establishment of the refinery and petrochemical complex is expected to significantly elevate the industrial profile of the Ramayapatnam region. Beyond the direct capital investment, the project is anticipated to be a major catalyst for job creation. It is also projected to stimulate the growth of ancillary industries and strengthen the overall port-led industrial development in the area. The state’s decision underscores a broader strategic initiative to position Andhra Pradesh as a highly competitive destination for substantial energy and infrastructure investments.
Leave a Reply