The company will invest INR166bn ($2.66bn) to increase the refinery capacity from 3 million tons per annum to 9 million tons, reported Times of India.

The project includes laying a 1,350km pipeline to bring in crude from a port on the east coast.

About INR88bn ($1.41bn) will be invested for the refinery expansion while the remaining will be sued for laying the pipeline and other assorted facilities.

Meanwhile, government consultancy firm Engineers India is preparing the project and the pipeline feasibility report, following which the BPCL board would make a final call.