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The government of India has not provided any funding for the proposed Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) at Paradip, according to a release issued by the petroleum and natural gas ministry.
“... as per information provided by Department of Chemicals and Petrochemicals, no budgetary support has been provided to Indian Oil Corporation Limited (IOCL) for part financing the capital cost of PCPIR,” said the release quoting written reply by petroleum and natural gas minister, Dharmendra Pradhan in Rajya Sabha on Wednesday.
IOCL’s upcoming crude oil refinery at Paradip holds the key to development of the PCPIR hub planned across 284 sq km in Kendrapara and Jagatsinghpur districts as it has been appointed as the anchor tenant for the complex.
The company recently laid foundation stone for development of a Rs 3,150 crore polypropylene unit in the PCPIR, the first such investment in the petro-complex by any firm. However, the investment announced by IOCL is like peanut when compared with Rs 2.8 lakh crore investment estimated for the hub.
To attract foreign player to the PCPIR, Foreign Direct Investment (FDI) is allowed upto 100 per cent of a project. But no separate fast track provisions are there for FDI proposals, the release said.
A special purpose vehicle (SPV) called Paradip Investment Region Development Ltd has been formed under state-owned Odisha Industrial Infrastructure Development Corporation Ltd (Idco) to implement the project. It has engaged Singapore-based Jurong Consultants to carry out feasibility study and product profile study of the PCPIR.
The total infrastructural investment on the Odisha PCPIR has been pegged at Rs 13,634 crore. Out of this, the state government will contribute Rs 1,800 crore while the balance will come from the private players.
Launched in March 2007, PCPIR policy was envisaged to promote integrated manufacturing location for refinery, petrochemical crackers, and other downstream industries. The government till date has approved five PCPIRs — Dahej (Gujarat), Paradip (Odisha), Vishakhapatnam-Kakinada (Andhra Pradesh), Cuddalore-Nagapattinam (Tamil Nadu) and Bina (Madhya Pradesh).
