Shares of public sector oil retailer Bharat Petroleum Corporation Ltd (BPCL) dropped 0.10% to ₹364.35 on the BSE on Thursday after the company announced capital expenditure plans worth ₹49,000 crore for increasing its footprints in the petrochemical segment and renewable energy in Bina refinery in Madhya Pradesh.

BPCL, one of India's premier oil refining and marketing companies, saw its stock opening gap up at ₹364.80 today. It rose to an intra-day high of ₹365.25, and is currently trading at ₹364.20. At the current share price, BPCL's m-cap stands at ₹79,047.57 crore.

The company says the core component of the expansion projects is the ethylene cracker project, which will drive the production of essential petrochemicals.

The project will include the setting up of an ethylene cracker (EC) complex, downstream petrochemical plants, and the expansion of the existing refinery capacity from 7.8 MMTPA to 11 MMTPA and associated facilities at Bina Refinery.

The expansion of Bina refinery is aimed at meeting the growing demand for petroleum products in central and northern India, said the company, adding that it'll also provide necessary feedstock to the EC complex and the petrochemical plant will cater to the growing domestic demand.

As per G Krishnakumar, chairman and MD, BPCL, the company's ₹49,000 ethylene cracker project in Bina refinery will meet the growing energy and petrochemical products demand in the country.

"We are steadfast in aligning our strategic imperatives with the government's Atmanirbhar Bharat mission to make India a self-reliant and globally competitive petrochemical powerhouse. These future-defining projects will generate employment opportunities and bolster our sustainable energy capabilities, a step towards a secure and net zero future.”

BPCL has said to enhance renewable energy footprints, it'll set up two 50 MW wind power plants in Madhya Pradesh and Maharashtra for captive consumption at Bina and Mumbai Refineries, respectively. "With a total project cost of approximately ₹978 crore (₹489 crore for each project), these wind power plants will be contributing to a greener and more eco-friendly operation."

In addition, Bharat Petroleum is investing in petroleum oil lubricants and lube oil base stock (LOBS) installations, with receipt pipelines at Rasayani in Maharashtra. The project, with an estimated cost of around ₹2,753 crore, aims to augment storage capacity, smoothen the supply chain and streamline the distribution of essential petroleum products.

The Board of Directors of Bharat Petroleum Corporation will meet on Monday to consider and approve the financial results for the quarter and fiscal year ended 31st March 2023 and also to consider the recommendation of dividends for FY23.

The company says it has identified six strategic areas – petrochemicals, gas, renewables, new businesses, that is, consumer retailing, e-mobility, and upstream – to serve as pillars of future growth. It targets to achieve net-zero emissions by 2040 and is investing about ₹1.40 lakh crore for these energy transitions.

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