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The Andhra Pradesh government has waived stamp duty and registration fees exceeding INR 20 crore to support Bharat Petroleum Corporation Ltd's (BPCL) greenfield refinery and petrochemical complex near Ramayapatnam Port in Nellore district. The exemption covers the transfer of more than 600 acres from Andhra Pradesh Maritime Board to APIIC and then to BPCL. Under the state's Industrial Development Policy 4.0, BPCL is set to invest nearly INR 97,000 crore over several years. The project will receive multiple financial incentives, including capital subsidy and GST refunds, making it one of the state's largest industrial investments.
The Andhra Pradesh government has provided a significant financial incentive to BPCL by exempting stamp duty and registration fees exceeding INR 20 crore to facilitate the establishment of a greenfield refinery and petrochemical complex near Ramayapatnam Port in Nellore district. Advertisement
G Sai Prasad, special chief secretary of the Revenue Department, explained that the exemption applies to the transfer of over 600 acres in Chevuru village, Gudluru mandal, from the Andhra Pradesh Maritime Board (APMB) to Andhra Pradesh Industrial Infrastructure Corporation (APIIC), and then from APIIC to BPCL. According to a government order issued earlier this week, the state decided to waive INR 17.69 crore in stamp duty and INR 2.72 crore in registration fees for this land transfer.
More than a year ago, the state had issued directives to allot 6,000 acres across five land parcels near Ramayapatnam Port on a cost basis. These orders included a commitment to provide financial incentives covering 75% of the capital expenditure over 20 years for a project worth nearly INR 97,000 crore. These incentives are part of the Andhra Pradesh Industrial Development Policy 4.0, which came into effect in October 2024.
In May 2025, the government authorized the APMB chief executive to transfer the 6,000 acres from the maritime board to APIIC to facilitate allocation to BPCL's project, ensuring exemption from stamp duty and registration fees. While the Inspector General of Registration and Stamps valued the 600.4-acre land at INR 17.9 crore based on market value, APIIC assessed it at over INR 136 crore, valuing each acre at INR 22.6 lakh.
The Inspector General also noted that the Nellore district registrar estimated stamp duty at more than INR 8.8 crore and registration fees at over INR 1.3 crore for the transfer from APMB to APIIC, with equal amounts for the subsequent transfer to BPCL. This brought the total potential revenue foregone by the state to more than INR 20.4 crore.
BPCL, a Maharatna public sector enterprise with a market capitalization of INR 1.67 lakh crore, plans to develop a 9-12 MMTPA greenfield refinery and petrochemical complex. Investment is expected to ramp up over the next several years: INR 4,843 crore during the current financial year, INR 9,686 crore next year, INR 14,529 crore in 2027-28, INR 29,059 crore in 2028-29, and INR 38,745 crore in FY30, totaling nearly INR 96,862 crore.
The project is also set to benefit from a capital subsidy of 43.5% disbursed in 15 installments, 100% GST refund during the operational phase, SGST refunds including ineligible amounts, and the state's share in IGST/CGST during construction. These measures aim to make the project financially viable and encourage large-scale industrial development in the region.
Source PTI
FAQ
Q1. What incentives has the Andhra Pradesh government provided for BPCL's refinery project?
The state has waived stamp duty and registration fees totaling over INR 20 crore to support Bharat Petroleum Corporation Ltd (BPCL) in establishing a greenfield refinery and petrochemical complex near Ramayapatnam Port in Nellore district. This waiver applies to the transfer of more than 600 acres of land from the Andhra Pradesh Maritime Board (APMB) to Andhra Pradesh Industrial Infrastructure Corporation (APIIC) and subsequently to BPCL.
Q2. What is the scale and investment plan of the project?
The project covers 6,000 acres across five land parcels. BPCL plans a phased investment of nearly INR 97,000 crore over several years, beginning with INR 4,843 crore in the current financial year and reaching INR 38,745 crore by FY30.
Q3. What additional financial support will the project receive?
The project will benefit from a 43.5% capital subsidy disbursed in 15 installments, 100% GST refunds during operations, reimbursement of SGST, and the state's share of IGST/CGST during the construction phase. These incentives are intended to make the refinery financially viable and attract large-scale industrial development in the region.
Q4. What is the planned capacity and significance of the project?
BPCL aims to establish a 9-12 MMTPA greenfield refinery and petrochemical complex, which will be among the largest industrial investments in Andhra Pradesh. The project is expected to generate substantial employment, strengthen local infrastructure, and boost downstream economic activity.
Q5. Why was Ramayapatnam Port chosen as the site?
The location provides strategic port access for efficient import of raw materials and export of refined products. The choice also leverages Andhra Pradesh's strong industrial ecosystem, infrastructure support, and favorable policy framework under Industrial Development Policy 4.0, ensuring smooth project execution and operational efficiency.
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