L&T onshore vertical bags 'major' order from BPCL to build India's largest flexible petrochemical plant

Larsen & Toubro (L&T) on Tuesday announced that the company's hydrocarbon onshore business vertical has bagged a 'major' EPC order from Bharat Petroleum Corporation Ltd (BPCL).

L&T classifies order amounts ranging between Rs 5,000 cr to Rs 10,000 cr as 'major'.

The state-owned oil company has ordered L&T to undertake engineering, procurement, construction, and commissioning of India’s largest LLDPE/HDPE swing unit, a flexible petrochemical plant designed to produce bothtypes of plastic sheets using shared equipment.


The unit would comprise of two trains of 575 KTPA each, to be constructed at Bina in Madhya Pradesh, and will be executed on a lump-sum turnkey basis.

The project is undertaken under BPCL’s Bina Petrochemicals & Refinery Expansion Project which aims to set up a petrochemical complex.

Under the plan, the oil refiner aims to enhance refinery capacity from 7.8 MMTPA to ~11 MMTPA to strengthen India's domestic manufacturing and achieve self-sufficiency in polymer production.

"This is a major order that will not only strengthen our balance sheet but also provide impetus to our demonstrated credentials in downstream hydrocarbon EPC space," Subramanian Sarma, Deputy Managing Director & President - L&T, said.

Shares of L&T were trading at Rs 4,084 per scrip (+Rs 12.20) at around 10:17 AM on BSE on Tuesday.

LLDPE stands for Linear Low-Density Polyethylene, while HDPE stands for High-Density Polyethylene.