20 May, 2008NEW DELHI: A cabinet secretary-chaired panel last week cleared the first mega oil, chemical and petrochemical investment hub, which is expected to attract an investment of Rs 3,43,000 crore.
Mittal Energy Investments, Total SA of France and oil refining and marketing major Hindustan Petroleum Corp (HPCL) would invest Rs 32,000 crore in the proposed petroleum, chemical and petrochemical investment region (PCPIR) which the Andhra Pradesh government has proposed in the Vishakhapatnam-East Godavari region.
The Cabinet committee on economic affairs (CCEA) is expected to consider the proposal on Thursday to give it the final go-ahead before the companies start construction work. The state government has a small administrative step to complete the process: notify the 603-sq km area as the petroleum, chemical and petrochemical hub, it is learned.
The massive investment — half of which has been committed by the investors — is expected to change the face of the southern state with anticipated exports of Rs 58,000 crore a year, tax receipts of Rs 46,500 crore a year and creation of 12 lakh jobs. The investment region is expected to account for 9% of the total value of goods and services produced in the state.
The Rs 32,000-crore investments by the HPCL-Mittal Energy-Total SA consortium will be the anchor tenant in the investment region, with numerous manufacturing units in the pharmaceutical, chemical, petrochemical and other specialised downstream industries coming up around it.
The consortium will set up a 15 million metric tonne a year (mmtpa) refining-cum-petrochemical complex at the Andhra Pradesh SEZ within the region. Besides this, HPCL is expected invest another Rs 10,000 crore to double its existing 7.5 mmtpa refining capacity in the region. Public sector refining major Oil & Natural Gas Corp (ONGC) would invest Rs 31,000 crore to set up a refinery and polypropylene unit in Kakinada SEZ.
The plan is to develop a number of SEZs, industrial parks, infrastructure projects and free trade and warehousing zones in the Vishakhapatnam-East Godavari region. While the central government is expected to provide financial support of Rs 5,214 crore for building roads, ports and airports, Andhra Pradesh intends to invest Rs 2,132 crore in building infrastructure. The state will also facilitate private sector participation in infrastructure creation at a cost of Rs 10,565 crore, it is understood.
Source: Economic Times
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