Amaravati, February 10 The Andhra Pradesh government has exempted stamp duty and registration fees amounting to over Rs 20 crore in favor 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.
"After careful examination of the matter, the government has decided to exempt stamp duty for an amount of Rs 17.6 crore and registration fee (including transfer duty) for an amount of Rs 2.7 crore for the transfer of 600.4 acres of land, out of 6,000 acres from APMB to APIIC and in turn from APIIC to BPCL," Prasad said 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 a cost basis and to provide financial incentives covering 75 per cent of the capital expenditure over 20 years, with an investment of nearly Rs 97,000 crore, to set up the refinery and petrochemical complex, the GO said.
These incentives are part of the Andhra Pradesh Industrial Development Policy 4.0, launched on October 16, 2024.
In May 2025, the government granted permission to the APMB chief executive to transfer 6,000 acres of land from the maritime board to APIIC to complete the process of allocating land to Bharat Petroleum Corporation Ltd's (BPCL) project, exempting stamp duty and registration fees.
Although the Inspector General of Registration and Stamps stated that the total value of the land stretching up to 600.4 acres, as per the market value basic register, is over Rs 17.9 crore, APIIC appraised it at over Rs 136 crore at a rate of Rs 22.6 lakh per acre.
Further, the Inspector General of Registration and Stamps stated that the Nellore district registrar has estimated a stamp duty of over Rs 8.8 crore and a registration fee of over Rs 1.3 crore on the sale deed to be executed for the transfer of land from APMB to APIIC, and an equal amount under the same heads for the further transfer of land from APMB to BPCL, amounting to a total of over Rs 20.4 crore.
"Therefore, the total financial implications involved are Rs 17,69,05,688 towards stamp duty and Rs 2,72,16,260 towards registration fee, which is a potential revenue that the state exchequer would forgo if the exemption is granted," the GO added.
BPCL, which has a market capitalization of Rs 1.67 lakh crore, is expected to set up a 9 to 12 MMTPA greenfield refinery cum petrochemical complex.
It is expected to invest Rs 4,843 crore during the current financial year and Rs 9,686 crore next year.
It will invest Rs 14,529 crore in 2027-28, Rs 29,059 crore in 2028-29, and Rs 38,745 crore in FY30, totaling Rs 96,862 crore in investment, according to an earlier GO.
The maharatna public sector enterprise will receive a capital subsidy of 43.5 per cent in 15 installments, 100 per cent GST refund for the operational phase, refund of SGST (including ineligible) and state share in IGST/CGST during construction.