L&T wins major BPCL contract to build India’s largest flexible polyethylene plant at Bina, boosting domestic petrochemical capacity and self-reliance.
Larsen & Toubro’s Hydrocarbon Onshore business vertical has secured a significant Engineering, Procurement, Construction, and Commissioning (EPCC) contract from Bharat Petroleum Corporation Limited (BPCL) for the development of what is set to become India’s largest flexible petrochemical manufacturing facility. The contract has been classified as a “major” order by Larsen & Toubro, a category typically reserved for projects valued between Rs. 5,000 crore and Rs. 10,000 crore (approximately US$600 million to US$1.2 billion), underscoring the scale and strategic importance of the undertaking.
The scope of work awarded to L&T includes the design, engineering, procurement, construction, and commissioning of a state-of-the-art Linear Low-Density Polyethylene (LLDPE) and High-Density Polyethylene (HDPE) swing unit. This facility will consist of two independent production trains, each with a capacity of 575 kilo tonnes per annum (KTPA). The project will be executed under a Lump Sum Turnkey (LSTK) arrangement, placing end-to-end responsibility for timely delivery and performance on L&T. The new petrochemical unit will be established at BPCL’s Bina refinery complex in the state of Madhya Pradesh.
Once commissioned, the plant is expected to set a new national benchmark in polyethylene production capacity and operational flexibility. The swing unit configuration will enable BPCL to dynamically switch between LLDPE and HDPE grades based on market demand, thereby enhancing product diversity, optimizing margins, and strengthening the company’s competitiveness in the domestic polymer market. This flexibility is particularly critical given India’s rapidly growing consumption of polymers across sectors such as packaging, infrastructure, automotive, agriculture, and consumer goods.
The project forms a core component of BPCL’s ambitious Bina Petrochemicals and Refinery Expansion initiative, which aims to transform the existing refinery into an integrated petrochemical complex. Through this expansion, BPCL seeks not only to increase its refining throughput but also to significantly enhance value addition by producing high-demand downstream petrochemical products. The expansion is aligned with BPCL’s long-term strategy to reduce exposure to volatile fuel margins while capitalizing on India’s strong structural demand for petrochemicals.
From a broader policy perspective, the project strongly supports the Government of India’s Aatmanirbhar Bharat (self-reliant India) vision. By expanding domestic polymer production capacity, the facility will help reduce reliance on imported polyethylene, improve supply security, and promote indigenous manufacturing. It is also expected to generate substantial employment opportunities during both the construction and operational phases, while stimulating ancillary industries and regional economic development.
Representatives from both L&T and BPCL have highlighted that the award of this major contract reflects BPCL’s confidence in L&T’s proven execution capabilities, technological expertise, and track record in delivering complex onshore hydrocarbon and petrochemical projects. For L&T, the order further reinforces its leadership position in India’s EPC landscape and strengthens its project portfolio in the high-growth petrochemicals segment.
