New Delhi : With the union cabinet clearing proposals of the West Bengal, Andhra Pradesh and Gujarat governments for setting up Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs) in their territorial domain, a major hurdle has been removed in the way of investment worth more than Rs 4,50,000 crore in PCPIRs, chemicals minister Ram Vilas Paswan said today.
“With the cabinet clearing the proposals for three PCPIRs, I believe investment would now start flowing in these regions. Going by their (the states’) estimates, investment worth Rs 4,50,000 crore should start happening there,” Paswan said. The PCPIR policy notified in April 2007 seeks to ensure adoption of a holistic approach to the development of global scale industrial clusters in the petroleum, chemical and petrochemical sectors in an integrated and environment-friendly manner. “They would have high-class infrastructure, and provide a competitive environment conducive for setting up businesses. They would thus result in a boost to manufacturing, augmentation of exports and generation of employment, all needed to counter the effects of the global economic downturn,” the minister said.
As per the policy, 40 per cent of the area would be a processing zone, while the remaining would be the non-processing area consisting of residential, commercial and other social and institutional infrastructure. In terms of the policy, the state government is only required to notify and not acquire the entire area. A PCPIR includes SEZ(s), Free Trade and Warehousing Zones, Industrial Parks and existing industrial clusters. All existing labour laws would be applicable in the PCPIR and SEZs, in the region, if any, would be governed by special laws.
Of the three proposals approved, the Andhra Pradesh government has proposed to set up a PCPIR at Vishakhapatnam-Kakinada-Rajahmundry belt covering an area of 603.58 sq km. The total industrial investment in it is estimated at Rs 343,000 crore including committed investments of Rs 1, 63,890 crore and the envisaged direct and indirect employment in the PCPIR is estimated to be about 5.25 lakh and 6.73 lakh persons respectively. The state has identified HPCL and GMR-led consortia as the two anchor tenants for this project. Similarly, the Narendra Modi administration in Gujarat has proposed to set up a PCPIR at Dahej spread over blocks of Vagra and Bharuch in south Gujarat, covering 453 sq km at an estimated investment of Rs 50,000 crore.
West Bengal had proposed to host a PCPIR in Haldia in Purba Medinipur district covering the existing Haldia Municipal Area and the adjoining areas of Haldia Development Authority (including Nayachar Island), covering an area of 250.19 sq km. The government has estimated a total investment of Rs 93,180 crore in the proposed PCPIR, including a committed investment of Rs 48,180 crore.