BPCL signs loan deal with SBI-led consortium for petrochemical, refinery projects

State-run oil company Bharat Petroleum Corporation Ltd (BPCL) has announced that it has signed a significant loan agreement worth Rs 31,802 crore with a consortium led by the State Bank of India (SBI). This financing will support the development of a petrochemical complex and the brownfield expansion of BPCL's refinery capacity at Bina, Madhya Pradesh. 

The consortium includes several banks: Punjab National Bank, Union Bank of India, Canara Bank, Bank of India, and Export-Import Bank of India.

The funds will be utilized to construct a petrochemical complex that will produce downstream polymers and chemicals, including linear low-density polyethylene (LLDPE), high-density polyethylene (HDPE), polypropylene (PP), benzene, toluene, and mixed xylene. 

Additionally, the refinery's capacity at Bina will be expanded from 7.8 million tonnes per annum (MMTPA) to 11 MMTPA, primarily to meet the feedstock requirements of the petrochemical plants.

Join PSU Connect on WhatsApp now for quick updates! Click here

Read Also : NTPC Auraiya celebrated its 38th Raising Day

The loan agreement was finalized on January 16, with a project finance term loan structure. Security for the loan includes a first-ranking charge on the project land, tangible fixed assets, and designated accounts like the debt service reserve account.

Read Also : PM Modi inaugurates Bharat Mobility Global Expo 2025, highlights India’s growing auto sector