"BPCL Allocates ₹36,000 Crore for Capital Expenditure Through FY26"

State-owned Bharat Petroleum Corporation Limited (BPCL) has unveiled plans to invest up to ₹36,000 crore in capital expenditure (capex) over the next two financial years leading up to FY26. This strategic move aims to fortify its presence in crucial sectors such as refineries, marketing, and petrochemicals.

The oil marketing giant is set to allocate approximately ₹15,000-16,000 crore in the ongoing fiscal year, followed by an estimated ₹16,000-20,000 crore in FY26. These investments are part of BPCL's ambitious Project Aspire, designed to infuse ₹1.7-lakh crore by FY29. The overarching objective of this initiative is to escalate refining capacity to 45 million tonnes per annum (mtpa) and introduce 4,000 new fuel stations, among other developmental endeavors.

In an investor call, BPCL's top management delineated the allocation of funds, earmarking substantial amounts for refinery and petrochemical projects. Notably, a significant portion of the capex will facilitate the expansion of the Bina refinery in Madhya Pradesh. The company anticipates commencing operations at the petrochemicals plant in Bina by FY29.

A considerable share of the total capex, amounting to ₹75,000 crore, will be directed towards refining and petrochemical ventures. Additionally, BPCL will embark on strategic pipeline projects, investing ₹8,000 crore, with identified projects worth ₹5,000 crore.

Expansion plans extend to augmenting the company's marketing business with a ₹20,000 crore infusion, while enhancing upstream production, primarily in Mozambique and Brazil, with an investment of ₹32,000 crore, contingent upon on-ground developments.

Furthermore, BPCL is eyeing significant investments in the gas and renewable energy sectors, allocating ₹25,000 crore and ₹10,000 crore, respectively. These ventures align with the company's broader vision of diversification and sustainability.

As for its core operations, BPCL witnessed a 2.09 per cent year-on-year growth in domestic market sales in Q4 FY24, consolidating its market share in petrol and diesel segments. The company anticipates a steady demand growth for petrol and diesel in the near term.

Expanding its retail footprint remains a priority, with plans to add 4,000 new fuel retail outlets by FY29. Additionally, BPCL is ramping up its electric vehicle (EV) charging network, aiming to establish 7,000 EV charging stations by FY25. Moreover, plans are underway to set up 26 compressed biogas (CBG) plants and produce green hydrogen to meet future energy demands sustainably.

HBL