Andhra govt exempts ₹20 crore stamp duty, fees for BPCL refinery project

The Andhra Pradesh government has exempted stamp duty and registration fees amounting to over ₹20 crore in favour of BPCL to facilitate the setting up of a greenfield refinery and petrochemical complex near Ramayapatnam Port in Nellore district.

G Sai Prasad, special chief secretary (FAC), Revenue (Registration. II) Department said the exemption pertains to the transfer of over 600 acres of land in Chevuru village, Gudluru mandal of Nellore district from Andhra Pradesh Maritime Board (APMB) to Andhra Pradesh Industrial Infrastructure Corporation (APIIC) and in turn from APIIC to BPCL.

"Government after careful examination of the matter, has decided to exempt the stamp duty for an amount of ₹17.6 crore and registration fee (including transfer duty) for an amount of ₹2.7 crore for transfer of land to an extent of 600.4 acres, out of 6,000 acres from APMB to APIIC and in turn from APIIC to BPCL," said Prasad in a government order (GO) on Monday.

 

More than a year ago, the Andhra Pradesh government had issued orders to allot 6,000 acres in five land parcels near Ramayapatnam Port on cost basis and commitment to provide financial incentives covering 75 per cent of the capital expenditure over 20 years on investment of nearly ₹97,000 crore to set up the refinery and petrochemical complex, the GO said.

These incentives flow from the Andhra Pradesh Industrial Development Policy 4.0, launched on October 16, 2024.

In May 2025, the government accorded permission to APMB chief executive to transfer 6,000 acres of land from the maritime board to APIIC to complete the process of allocation of lands to Bharat Petroleum Corporation Ltd's (BPCL) project, exempting stamp duty and registration fees.

Though the Inspector General of Registration and Stamps had stated that the total value of the land stretching up to an extent of 600.4 acres as per market value basic register is over ₹17.9 crore, the APIIC appraised it at over ₹136 crore at the rate of ₹22.6 lakh per acre.

Further, the Inspector General of Registration and Stamps stated that Nellore district registrar has estimated a stamp duty of over ₹8.8 crore and a registration fee of over 1.3 crore on the sale deed to be executed for transfer of land from APMB to APIIC and an equal amount under the same heads for further transfer of land from APMB to BPCL, amounting to a total of over ₹20.4 crore.

"As such, the total financial implications involved is ₹17,69,05,688 towards stamp duty and ₹2,72,16,260 towards registration fee, a potential revenue which as to be foregone by the state exchequer, in case of granting exemption," the GO added.

BPCL, which has a market cap of ₹1.67 lakh crore, is expected to set up a 9 to 12 MMTPA greenfield refinery cum petrochemical complex.

It is expected to invest ₹4,843 crore during the current financial year and ₹9,686 crore next year.

It will be investing ₹14,529 crore in 2027-28, ₹29,059 crore in 2028-29 and ₹38,745 crore in FY30, totalling ₹96,862 crore investment, according to an earlier GO.

The maharatna public sector enterprise will get a capital subsidy of 43.5 per cent in 15 instalments, 100 per cent GST refund for the operational phase, refund of SGST (including ineligible) and state share in IGST/CGST during construction.