Bharat Petroleum Corporation (BPCL) is a Government Company. Chairman G Krishna Kumar has said that the company plans to invest Rs 1.7 lakh crore in the next five years. The company will invest this in expanding its core business of oil refining and fuel marketing as well as in new areas like petrochemicals and green energy. BPCL currently has about 14 percent of the country’s total oil refining capacity and about a quarter of the fuel retail network. The company is planning to expand its core business along with entering new areas. Market experts say that the speed with which BPCL wants to expand its business is good news. This will help the company to increase its income. Its effect will be seen on the company’s stock. The stock can give good returns in the long term.
Implementing ‘Project Aspire’
The company’s chairman has said in the annual report that BPCL is now implementing the first phase of a decades-long aspirational journey in the form of ‘Project Aspire’. Its five-year strategic framework is based on two fundamental pillars. One is promotion of core business and the other is investment in future projects. Krishna Kumar said, “Our medium-term strategy continues. Under this, while on the one hand we are promoting our core business of refining and marketing of petroleum products and exploration and production activities, on the other hand we are equally focusing on key areas like petrochemicals, gas, green energy, non-fuel retail and digital.
Investment of about Rs 1.70 lakh crore in 5 years
He said, “Capital expenditure of about Rs 1.70 lakh crore will be made in five years under Project Aspire. This investment will help us create long-term value for various parties associated with us while preserving the environment for the coming generation.” The company has set a target of net zero carbon emissions from its operations by 2040. The chairman said, “BPCL has prepared a blueprint for net zero carbon emissions. This includes renewable energy, green hydrogen, compressed biogas, carbon capture, use and storage (CCUS), efficiency improvements etc. This will require capital expenditure of about Rs 1 lakh crore in a phased manner by 2040 and the company is gearing up for it. ”
Preparations to expand refining capacity
The company’s strategy to invest in the core business is based on the estimate of four to five percent annual growth in the consumption of energy and petroleum products from the country’s fast-growing economy. Also, the demand for key petrochemical products is expected to grow at a rate of seven to eight percent on an annual basis. He said, “This is a strategic opportunity to expand refining capacity along with the development of integrated petrochemical complexes.” BPCL is implementing new petrochemical projects in two of its three oil refineries. Ethylene cracker project is being implemented at Bina refinery in Madhya Pradesh with an investment of Rs 49,000 crore. Also, the oil refining capacity is being increased from the current 78 lakh tonnes to 1.1 crore tonnes per annum by 2029. Apart from this, a polypropylene project is being set up at Kochi refinery in Kerala. It is expected to be operational by 2027.
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