So far, Rs 54,000 spent on developing PCPIR infrastructure

Figures have been collated by end of 2012 in recent update of various PCPIR zones in country

A total of Rs 54,000 crore has been invested in developing infrastructure in all the proposed PCPIR zones by the respective state government in collaboration with central government and private participation.
 
This is significant going by the economic slowdown in the country and slower pace of growth. These figures have been collated by the end of 2012 in the recent update of the various PCPIR zones in the country.
 
PCPIR- Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) is a flagship scheme of the department of chemicals and petrochemical to develop projects to ensure raw material availability of the petrochemical and plastic industry- naphtha.

Currently there are four PCPIR zones underway- Vishakhapatnam and East Godavari District in Andhra Pradesh, Bharuch in Gujarat, Paradip in Orissa and cudallore and Nagapattnam District in TamilNadu.

An interministerial meeting had been called by the department of chemicals and petrochemicals with ministry of Oil and petroleum to expedite the investments and projects in PCPIR zones.

The public sector oil refineries are acting as the main anchor tenant in most of the PCPIR zones. However due to economic slowdown, many of the projects were either delayed or called off. Now these proposed investments and he refinery projects are back on track .

 
The infrastructure development in these projects includes road development, port development, rail links, desalination plants, setting up of LNG terminal. These are over and above the main project of refinery or feedstock . In fact the government of Gujarat is in the process of consultation with ministry of civil Aviation for development of airport in Ankleswar Industrial belt.
 
The central government will be contributing in the form of viability gap funding ( VGF). Four projects combine have sought VGF of around Rs 3145 crore.
 
As for the indivisual projects , ONGC Petro Additions Limited (OPAL), a joint venture company promoted by ONGC and Gujarat State Petroleum Corporation (GSPC) is the main anchor tenant or parent entity of Gujarat PCPIR.

OPAL is almost ready with its 1.1 MMPTA petrochemical cracker plant at an estimated cost of RS 19,500 crore and carbon extraction unit. OPAL has already made investment of Rs.15,124 crore in the multi feed Cracker Complex in SEZ, of 1.1 million tonne/annum capacity. The natural gas (C2/C3) component extraction plant at Dahej is completed.
 
While a total investment of RS 50,000 crore is expected, already investments to the tune of RS 1,24,400 have been made . Significant investments in this area apart from OPAL are ONGC extraction plant, ABG Ruchi Petrochemicals, Gujarat Alkalies and Chemicals Ltd among others. Investment in infrastructure in this zone has been to the tune of RS 7800 crore.

 
However Hindustan Petroleum Corporation Limited (HPCL) and GMR-led Consortium has spent till date Rs 9700 crore to develop the Andhra Pradesh PCPIR. The projects include up gradation of Vishakh refinery from 7.5 to 15 MMTPA at a cost of Rs 10, 000 crore, new 15 MMTPA refinery cum petrochemical complex worth Rs 32,000 crore.

The total investment in developing infrastructure in this area has been to the tune of RS 18,800 crore which primarily include funding by the state government and private [parties. The central government will be contributing around 1206 crore through VGF.

The various infrastructure developed include expressway from Gangavaram Port to Kakinada Port (138 km ), a rail link of 7.5 km from APSEZ to the existing South Central Railway Trunk and airport infrastructure by development of New Visakhapatnam International Airport and up gradation of Rajahmundry airport.

 
In Paradip PCPIR zone, the main entity or anchor tenant Indian oil Corporation (IOCL) has already invested Rs. 22,000 crore in commissioning 15 MMTPA grassroot refinery at Paradip in the first phase at a cost of Rs. 30,000 crore.

The refinery will be an integrated crude processing unit and will be commissioned in 2014. It proposes to set up a petrochemical complex at a later date depending on the market conditions.

Investment in infrastructure has been to the tune of Rs 14,000 crore to develop road projects of Coastal Corridor Dhamra Port-Paradip PCPIR- Astarang Port (140 km) and ,Bhubaneswar-Paradip PCPIR- Greenfield Corridor (73 km).

Besides, Paradip Port is augmenting its capacity from 71 MMTPA to 134 MMTPA by 2013 and a 1320 MW Power Plant has been approved by the state government. While the state government has already spent Rs 1800 crore along with private participation of RS 11,000 crore, central government will be contributing to the tune of RS 716 crore through VGF.
 
Similarly, in TamilNadu PCPIR, the anchor tenant Nagarjuna Oil Corporation Ltd is setting up a 12 Million Metric Tons Per Annum (MMTPA) Refinery Project at Cuddalore at a total cost of Rs. 22,000 Crore. The project activities have commenced and the target date for commissioning of phase I of refinery is July, 2014.

Till date , NOCL has invested around RS 6,090 crore . Investment in infrastructure has been Rs 13,500 crore wherein state government has contributed RS 866 crore and central government will be funding the viability gaps to the tune of Rs 1143 crore.