New Delhi: State-owned Bharat Petroleum Company plans to take a position Rs 1.7 lakh crore over the subsequent 5 years to develop its core oil refining and gasoline advertising enterprise in addition to in ‘future huge bets’ of petrochemicals and inexperienced power, its chairman G Krishnakumar has mentioned. Bharat Petroleum Company Ltd (BPCL), presently, owns about 14 per cent of India’s oil refining capability and a couple of quarter of the gasoline retailing community. It plans to develop these companies whereas foraying into newer areas.
The agency is now implementing the primary section of a multi-decade aspirational journey within the type of ‘Venture Aspire’ – its five-year strategic framework that’s primarily based on two elementary pillars – ‘Nurturing the Core’ and ‘Investing in Future Huge Bets’, he mentioned within the firm’s newest annual report.
“Our mid-term technique is on a continuum. Whereas we stay dedicated to rising our core companies, which embrace refining and advertising petroleum merchandise and upstream, we’re equally targeted on our huge bets comprising petrochemicals, gasoline, inexperienced power, non-fuel retail, and digital.
“Venture Aspire, with a deliberate capex outlay of round Rs 1.70 lakh crore over 5 years, will allow us to create long-term worth for our stakeholders whereas preserving our planet for future generations,” he mentioned.
“A cornerstone of our long-term technique, Venture Aspire, with a Rs 1.70 trillion funding, marks the preliminary section of our multi-decade odyssey to form the power of tomorrow. This, coupled with our strong stability sheet, fuels our ambition to steer the power transition.”
The corporate is concentrating on internet zero carbon emissions from its operations by 2040.
“BPCL has drawn a net-zero roadmap, which encompasses renewable energy, inexperienced hydrogen, compressed biogas, carbon seize, utilisation, and storage (CCUS), effectivity enchancment and the offsets procurements. This could require a phased capital outlay of roughly Rs 1 lakh crore until 2040, and the corporate is geared for a similar,” he mentioned.
The agency’s guess on persevering with investing in core companies is predicated on the premise that India’s booming financial system will drive a 4-5 per cent annual improve in power demand and petroleum product consumption. Additionally, the demand for main petrochemical merchandise is predicted to rise by 7-8 per cent yearly.
“This presents a strategic alternative to broaden refining capability alongside the event of built-in petrochemical complexes,” he mentioned.
BPCL is implementing new petrochemical initiatives at two of its three oil refineries. A Rs 49,000 crore ethylene cracker mission is being carried out on the Bina refinery in Madhya Pradesh, alongside elevating oil refining capability from the present 7.8 million tonnes to 11 million tonnes yearly by 2029. A polypropylene mission is being arrange at Kochi refinery in Kerala by 2027.
“To fulfill the anticipated demand past our deliberate expansions in Bina and Kochi, we’re actively evaluating choices for establishing further built-in refining and petrochemical capacities throughout the subsequent 5-7 years,” Krishnakumar mentioned with out disclosing both the investments or the situation of such a mission.
Andhra Pradesh is being speculated because the probably web site after Prime Minister Narendra Modi’s BJP and regional get together TDP stormed to energy within the state in just lately concluded meeting elections. TDP has been demanding the implementation of a refinery-cum-petrochemical complicated that was promised as a part of the bundle when the state was cut up greater than a decade again.
“Our funding within the petrochemical mission is in keeping with our aspiration of changing into a dominant participant in India’s petrochemical development story,” Krishnakumar mentioned.
On power transition, he mentioned BPCL is concentrating on to construct 2 gigawatts (GW) of renewable power capability by 2025 and 10 GW by 2035.
“We’re investing almost Rs 1,000 crore to ascertain two 50 MW captive wind energy vegetation in Maharashtra and Madhya Pradesh, which can help our refineries in Mumbai and Bina.”
The agency can also be investing round Rs 300 crore in 72 MWp of photo voltaic mission in Prayagraj, Uttar Pradesh.
“Concomitantly, we’re executing inexperienced hydrogen initiatives aligned with the Nationwide Inexperienced Hydrogen Mission. These initiatives embrace a 5 MW electrolyser plant at Bina refinery and a inexperienced hydrogen refuelling station with an indigenously developed electrolyser at Kochi,” he famous.
BPCL, he mentioned, is dedicated to supporting the transition to electrical mobility by way of a strong and accessible charging infrastructure.
The corporate has put in over 3,000 charging stations, together with quick chargers for automobiles and two-wheelers. 900 quick chargers are put in throughout 120 freeway corridors, which helps handle the vary, discovery and time nervousness of electrical car (EV) homeowners.
“Over the subsequent 5 years, we purpose to put in 4-wheeler quick chargers at roughly 6,000 shops throughout 400 freeway corridors, prioritising high-traffic corridors just like the Golden Quadrilateral and N-S/E-W highways,” he mentioned.
On biofuels, he mentioned BPCL sells petrol with 20 per cent ethanol mix at 4,279 out of its over 22,000 petrol pumps.
Additionally it is constructing compressed biogas vegetation utilizing municipal stable waste to make gasoline that can be utilized as CNG in vehicles.
The agency can also be exploring partnerships within the enviornment.
“These mixed efforts, together with the upcoming commissioning of a bio-ethanol refinery, positions BPCL as a key participant in India’s transition to a greener gasoline combine, creating a strong ecosystem for the adoption of cleaner fuels throughout the nation,” he added.
BPCL is establishing a company enterprise capital fund to take a position immediately in promising startups.
“As a way to thrive on this complicated and difficult enterprise panorama, we’ll leverage our agility and deal with operational excellence to make sure continued success. Security and reliability will stay our prime priorities, guiding all our actions. We’re dedicated to upholding the very best requirements of company governance,” he added.
He mentioned the power sector of India stands at an inflection level.
“The nation has an bold imaginative and prescient of changing into a USD 30 trillion developed financial system by 2047. ‘Viksit Bharat @2047’ will necessitate an nearly fourfold improve in major power demand.”
India’s exponential development trajectory will propel it to a pivotal position within the world power market, accounting for roughly 12 per cent of world power consumption by 2047.
“The important thing strategic targets for India within the power sector will entail vital enlargement in refining capacities, elevating the share of gasoline within the power basket from about 6 per cent to fifteen per cent, establishing management in petrochemical exports, and sharply decreasing power imports from present ranges of 47 per cent to beneath 25 per cent by 2030 and to zero by 2047,” he mentioned.
India is concentrating on 500 GW of non-fossil gasoline power capability, sourcing half of its power wants from renewables, decreasing carbon emissions by 1 billion tonnes and decreasing carbon depth by 45 per cent by 2030 with the final word aim of net-zero emissions by 2070.
“Constructing on its sturdy Indian power presence, BPCL aspires to satisfy 7-10 per cent of the nation’s major power demand by 2047,” he mentioned.