The newly approved Petroleum, Chemicals and Petrochemicals Investment Region for Tamil Nadu, set up at Cuddalore and Nagapattinam, has received government support of Rs 5,120 crore. This will be part of investments in external infrastructure of Rs 13,800 crore, and over and above an estimated investment of Rs 99,750 crore.
According to official sources, this is significant as the ministry is already proposing additional government grants for the project to fasten the projects, of course with riders.
PCPIR is the flagship scheme of the Ministry of Chemicals and Fertilizers which has approved investments worth Rs 1,54,512 crore in three regions — Gujarat, Andhra Pradesh and West Bengal.
Officials said all three PCPIRs had not only received investments but also got companies which committed operations.
“Since the program was launched in 2007, it took some time get the projects started since economic slowdown creped in and companies had to put their plans on hold. Now investments have started coming in. In fact companies have also committed investments for new PCPIRs like Orissa and Tamil Nadu,” said an official source.
In another boost to committed investments to much delayed PCPIR projects, the Visakhapatnam and East Godavari PCPIR in Andhra Pradesh has attracted additional investment of Rs 9600 crore apart from investment commitment of Rs 73,000 crore through its main or “anchor” investors — a consortium of Hindustan Petroleum Corporation Ltd and GMR.
The state government has committed Rs 2,132 crore for developing physical infrastructure followed by Rs 10,565 crore from private parties and another Rs 6,334 crore through public-private partnership. The other companies which have committed investments in Andhra Pradesh PCPCIR are ONGC (oil and gas exploration in KG basin), Rain Commodities, Continental Carbon India Ltd, Indian Strategic Petroleum Reserve Ltd, Velankani Chemicals, Air Liquide India, Southern Online Biotechnologies, Reliance Industries Ltd, Bharat Petroleum Corporation Ltd, Hetero Drugs, Baker Hughes, Gangavaram Port Ltd, Visakhapatnam Port Trust, National Thermal Power Corporation, Hinduja Power Project and Kakinada SEZ.
Similarly, the newly approved Orissa PCPIR in Paradeep, Indian Oil Corporation, the anchor investor is setting up a 15 million metric tonne per annum ( MMTPA) grassroot refinery , likely to be commissioned in March 2012 at a cost of Rs 29,777 crore. The PCPIR is expected to attract total investment of Rs 2,77,734 crore with total employment generation for about 6,48,000 employees
For the Bharuch PCPIR in Gujarat , the state government has already completed 60-70 per cent of land and received Rs 70, 0000 crore of investments. Petronet LNG is setting up a 1200 mega watt (MW) power plant. ONGC Petro Additionals Ltd (OPAL) — a joint venture of ONGC and Gujarat State Petroleum Corporation is main anchor investor with committed project investment of Rs 16,400 crore. The investments are for the Rs 13,000-crore multi-feed petrochemical cracker and Rs 3,400-crore carbon extraction unit.
Besides, the state government of Gujarat has notified PCPIR zone under its special investment zone Act, thus according to all tax reliefs and benefits thereon.
Various other companies which have committed investments in Gujarat PCPIR are ONGC extraction plant, ABG Shipyard, Ruchi Petrochemicals, Gujarat Alkalies and Chemicals Ltd, DIC Fine Chemicals, Sajjan Specialty, Pidilite Industries, Rallis India, Lanxess India, Ginni Filament, Arcoy Biorefinery, Romano Tiles, India Peroxide and Neesa Infrastructure.
In the West Bengal PCPIR, IOC has completed upgradation of 6mmpta refinery to 7.5 mmpta. While ministry of environment and forests has approved its terms of reference, the project has signed a power purchase agreements with committed investment of RS 12,870 crore.
Indian Oil Corporation (IOC) is the anchor investor in the West Bengal PCPIR with a committed investment of Rs 3,000 crore for expansion of its refinery and a new hydro cracker unit, Rs 1,800 crore for a coker unit and Rs 4,000 crore for a new paraxylene unit. The Spic group-controlled CALS refinery has proposed to set up a Rs 5,000-crore crude refinery complex for blending crude which was earlier to have been commissioned by the end of 2010. There are also grassroot refineries proposed by IOC and CALS, which will take the total investment to Rs 93,180 crore. For physical infrastructure, the central government has also earmarked Rs 2,108 crore in its current five-year plan. The remaining Rs 15,923 crore has been committed through the state government jointly with public-private partnerships.