Tata Power and Bharat Petroleum Corporation (BPCL) have signed a memorandum of understanding to develop Rs. 2.5 bn of power infrastructure for BPCL’s Petro Resid Fluidized Catalytic Cracking Unit (PRFCCU) project at its Mumbai refinery. The arrangement will provide the facility with dedicated connectivity and supporting electrical assets.

Under the agreement, Tata Power will provide 110 kV connectivity and lead the design and development of the associated infrastructure. Construction is scheduled for completion in about 24 months, and the system will serve the PRFCCU’s power requirement of 90 MW, according to an official release issued on Tuesday.

The PRFCCU project has an investment of Rs. 142.03 bn and a processing capacity of 3 mn metric tonnes per annum (MMTPA). It is intended to increase the recovery of higher-value products from refinery residues and support BPCL’s petrochemical diversification strategy. The companies described it as the first project of its kind to be executed in India.

For Tata Power, the project will strengthen its transmission network in Trombay, an important industrial zone in Mumbai. The new infrastructure will cater to increasing electricity demand from large industrial consumers and other developments with concentrated power requirements, while adding capacity near the refinery.

Separately, Tata Power plans to develop a 400 kV transmission facility at Trombay over the next five years as part of its broader strategy to strengthen Mumbai’s power network. The proposed augmentation is intended to improve power evacuation capacity and grid reliability for the city’s industrial and commercial consumers. The initiatives will expand the company’s role in supplying and transmitting electricity to major users in the metropolitan region.