Projects Info |
   
Advertise Here [728 W x 90 H pixels]
Interaction | December 2013

We have made significant progress in PCPIR projects

The development of Petroleum, Chemical and Petrochemical Investment Region (PCPIR) in India will certainly provide some impetus to plastic manufacturers as it will ensure significant raw material availability. Discussing some of the initiatives at Plastivision India 2013, Avinash Joshi, Joint Secretary, Union Ministry of Chemicals & Fertilizers, Department of Chemical and Petrochemicals (DCPC), highlights to RAHUL KAMAT the immense opportunities for private infrastructure players in the PCPIR region.  

What is the status of the Petroleum, Chemical and Petrochemical Investment Region (PCPIR), which intends to ensure raw material availability for the plastic industry?
  In association with central government and private participation, the state governments have invested Rs 54,000 crore in developing infrastructure in all the four proposed PCPIR zones. The four PCPIR zones the districts of Visakhapatnam and east Godavari in Andhra Pradesh, Bharuch in Gujarat, Paradip in Odisha, and Cuddalore and Nagapattinam in Tamil Nadu-ùwill accommodate infrastructure development including roads, ports, rail connectivity projects, desalination plants and constructing liquefied natural gas terminals. If required, the Centre will contribute in the form of viability gap funding (VGF) for these four projects, which comes to around Rs 3,145 crore.

 

Who are the anchor tenants for these four projects? Has there been any private involvement so far?
 The public sector oil companies are the anchor tenants. To begin with, ONGC Petro Additions Limited (OPAL), a joint venture company promoted by ONGC and Gujarat State Petroleum Corporation (GSPC), is the main anchor tenant of Gujarat PCPIR. The JV is almost ready with its 1.1 million metric tonne per annum (mmtpa) petrochemical cracker plant. The total investment so far made in this project is around Rs 19,500 crore. There are already significant amount of investment happened in the PCPIR. Apart from OPAL-ONGC project, private companies like ABG Ruchi Petrochemicals, Gujarat Alkalies and Chemicals Ltd have invested. Investment in infrastructure in this zone has been to the tune of Rs 7,800 crore.

 

Another JV partnership Hindustan Petroleum Corporation Limited (HPCL) and GMR has spent Rs 9,700 crore till date to develop the Andhra Pradesh PCPIR. The projects include upgradation of Visakhapatnam refinery from 7.5 to 15 mmtpa at a cost of Rs 10, 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.

 

In Paradip PCPIR zone, the anchor tenant Indian Oil Corporation (IOCL) has already invested Rs 22,000 crore in commissioning 15 mmtpa refinery at Paradip in the first phase. The refinery will be an integrated crude processing unit and will be commissioned in 2014. IOCL proposes to set up a petrochemical complex at a later date depending on the market conditions.

 

Similarly, in Tamil Nadu PCPIR, the anchor tenant Nagarjuna Oil Corporation Ltd is setting up a 12 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.

 

So far what is the development in terms of outflow for allied infrastructure development?
 Basically, every PCPIR regions have different set of requirements. For Andhra Pradesh PCPIR, various infrastructure developments from expressway to airport development-ùis happening. There are plans to develop expressway from Gangavaram Port to Kakinada Port, a rail link from Andhra Pradesh SEZ to the existing South Central Railway trunk route, and airport infrastructure by New Visakhapatnam International Airport and upgradation of Rajahmundry airport.

 

In Paradip PCPIR, it is expected that around Rs 14,000 crore will be spent on infrastructure development to construct road projects throughout the coastal corridor and Bhubaneswar-Paradip PCPIR greenfield corridor.

 

Recently the government of India has given its nod for two plastic parks. However, not much of progress has been achieved so far. When are the funds for these two parks likely to be released? How many state governments have approached with proposals?
 With the plastic parks scheme, the ministry is aiming to increase investment in the sector for additions in capacity. Adopting a clustered development approach, the scheme aims to achieve environmentally-sustainable growth through innovative methods of waste management, recycling, etc.

 

Under the plastic park scheme, we can provide a grant-in-aid to the extent of 50 per cent of the project cost, not exceeding Rs 40 crore per special purpose vehicle (SPV) to be set up for the purpose. The remaining contribution in the SPV will be from the state government, its agencies, beneficiary industries or loan from financial institutions. The release of funds will be based on identification of milestones and time limits set for each such milestone to be decided at the time of the project approval by a scheme steering committee (SSC) in DCPC. So far, we have approved first installment of Rs 8 crore to the plastic park to be set up in Paradip (Odisha), and simultaneously when we see a comfortable progress for a plastic park in Raisen district (Madhya Pradesh), soon we will release the fund. This amounts the 25 per cent of the total allocation to be funded. Meanwhile, we have already received proposals from Tamil Nadu (Manali Industrial Estate) and Assam (Tinsukhia), which are at the preliminary stage. I will not be able to share more details at this time.

 

Can you throw some light on the two plastic clusters you were talking about?
 The plastic cluster in Madhya Pradesh will be set up in Raisen district spread over 138 acre. The area will be dedicated for setting up nearly 150 plastic units, which would provide direct and indirect employment to over 25,000 people. The SPV for this plastic park will be known as Madhya Pradesh Plastic Park Development Corporation Ltd. Interestingly, All India Plastic Manufacturers Association and its members have evinced keen interest in the area and inked an agreement with the state government for making mega investment there. In addition, the Cabinet has also approved draft agreements to be linked with the proposed Delhi-Mumbai-Industrial-Corridor (DMIC) under which Pithampur-Dhar-Mhow Investment Region will be developed.

 

As far as Odisha is concerned, a SPV Paradip Plastic Park Ltd has been already set up. The plastic park is being located near Indian Oil Corporation Ltd's facility. The infrastructure related the micro, small, medium and large units in the plastic park will be facilitated by the Paradip Refinery and it has the necessary state-of-the art infrastructure. The park will open opportunities to the entrepreneurs in and around districts like Balasore, Bhubaneswar, Cuttack, Paradip, and other districts of Odisha to set up new venture. This will help them to expand their operations to globally compete in the sectors. These projects will bring in social and economic benefit by creating direct and indirect employment opportunities for people.

 

Send your feedback to: feedback@ASAPPmedia.com

Post your comment
Name:  
Email:    
Comments:  
Verification Code:   Change Image


 
Advertise Here [728 W x 90 H pixels]