Andhra Pradesh is planning to build a large oil refinery and petrochemical plant in Ramayapatnam, Nellore district. Bharat Petroleum Corporation Limited (BPCL) is leading the project, which is worth Rs 60,000 crore. This project is part of a promise made when the state was divided in 2014 and strengthens Chief Minister N Chandrababu Naidu's role in driving the state's development.

Following an assessment of three potential sites—Ramayapatnam, Machilipatnam and Srikakulam—BPCL has chosen a 1,000-acre site in Ramayapatnam. Given its strategic benefits, such as having access to a dedicated jetty at the Ramayapatnam port, Ramayapatnam was determined to be the most viable location following thorough feasibility studies carried out following discussions with BPCL's leadership in July.

Later this month, the project is anticipated to be formally announced, possibly coinciding with the event to lay the foundation stone for NTPC's green hydrogen centre at Pudimadaka, close to Visakhapatnam. The investment by BPCL highlights Andhra Pradesh's rising stature as a major industrial project hub. The project has been a major goal since the state's split and is in accordance with the Andhra Pradesh Reorganisation Act, 2014. Within ten years, Andhra Pradesh was compelled by Section 93 of the Act to develop a greenfield oil refinery and petrochemical hub. In fulfilling these commitments, this action is a major step.

The Telugu Desam Party (TDP), led by Naidu and supporting the BJP-led National Democratic Alliance at the centre, benefits politically from the refinery project as well. Following his election victory, Naidu met with Prime Minister Narendra Modi to discuss the state's goals, with the refinery project at the top of the list. The team from BPCL began discussing matters within days, which was a quick step forward. It is anticipated that this project will boost Andhra Pradesh's economy and generate a large number of job opportunities. By building the refinery and petrochemical hub, BPCL hopes to support the state's industrial development while bolstering India's downstream capabilities and meeting the country's rising energy demands.