PM Modi Grants CM Naidu’s ₹60,000 Crore Wish for Andhra Pradesh Oil Refinery and Petrochemical Hub

chandra babu with BPCL officials

New Delhi: In a significant development, Prime Minister Narendra Modi recently met with his NDA ally and Andhra Pradesh Chief Minister N. Chandrababu Naidu. Their meeting, just five days ago, resulted in a special demand from Naidu for Andhra Pradesh, which Modi promptly accepted. The central government has now given the green light to set up an oil refinery and petrochemical hub in the state, backed by an impressive investment of ₹60,000 crore.

The Refinery Project: Key Details

  • Three Potential Locations: The Andhra Pradesh government has identified three potential locations for the refinery: Srikakulam, Machilipatnam, and Ramayapatnam. These sites are strategically chosen to maximize efficiency and regional impact.
  • Budget Announcement: An official announcement regarding the refinery is expected during the general budget presentation on July 23. However, due to the complexity of assessing and finalizing the locations, the specific site may not be disclosed during the budget session.
  • Political Sensitivity: The choice of locations spans different parts of the state north, central, and south making the announcement politically sensitive.
  • Commitment Under Andhra Pradesh Reorganisation Act 2014: The refinery project is not just a recent development. It is a commitment laid down in the Andhra Pradesh Reorganisation Act 2014, which mandates the Centre’s role in the state’s sustainable development.
  • BPCL Involvement: Andhra Pradesh Chief Minister N. Chandrababu Naidu met with top officials of Bharat Petroleum Corporation Limited (BPCL) to discuss the feasibility of the project. BPCL Chairman and Managing Director Krishna Kumar led the discussions.
  • Land Requirement: The ambitious project will require approximately 5,000 acres of land. The state government is committed to facilitating this land acquisition process smoothly.

Naidu’s Tweet and Speculations

CM Naidu took to Twitter to emphasize Andhra Pradesh’s strategic location on the east coast, highlighting its immense potential for petrochemicals. The project aims to boost economic growth and create employment opportunities in the region. Interestingly, this move has sparked speculations that Bihar Chief Minister Nitish Kumar may also seek a similar demand from the central government for his state.

chandra babu with BPCL officials

This approval marks a significant milestone for Naidu, who has consistently advocated for the refinery during his interactions with PM Modi and Petroleum Minister Hardeep Puri. With Naidu’s 16 MPs providing crucial support to the BJP-led NDA government, this decision aligns with the commitment made during the state’s bifurcation.