West Bengal Govt to go ahead with Nayachar chemical hub plans

KOLKATA,17th October,2009: The Lok Sabha poll reverses notwithstanding, the Buddhadeb Bhattacharjee government hasn't given up on its industrialization hopes around the proposed chemical hub at Nayachar. It is readying to draft a changed agreement for the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR).

The chief minister convened a high-level meeting at Writers' Buildings on Friday to do the needful. Among those who attended were other members of the Cabinet sub-committee on industries finance minister Asim Dasgupta and industries minister Nirupam Sen. Others present were land and land reforms minister Abdur Rezzak Mollah, urban development minister Asok Bhattacharya, Left Front chief whip in the state Assembly, Md Masin, and industries secretary Sabyasachi Sen.

According to sources, the meeting was on several industry-related issues, including the PCPIR. Nandigram had figured prominently as the venue for the mega chemical industrial estate and the PCPIR that was to come up near Haldia when the plan was first floated in 2005, and the subsequent agreement was drafted on these lines. After the bloody resistance to the choice of venue (which, experts feel, was a major cause for the Left's reverses), the government has decided to keep its promises unchanged, keeping an eye on the 2011 Assembly elections.

Nayachar is a 64 sqkm island on the Hooghly in East Midnapore. Prasoon Mukherjee, director of New Kolkata International Development (NKID) which through a joint venture with the West Bengal Industrial Development Corporation (WBIDC) is to develop the infrastructure on the island had earlier said the PCPIR is an expense account for NKID, but the government is bent on going ahead with the project.

A senior Writers' official revealed that the revised agreement, with Nayachar as the changed venue, will now have to be clinched between the state, the Centre and NKID. He said those attending the meeting discussed the draft as well as other industry-related issues, such as granting subsidy to Cals Refinery, which will partner the PCPIR. NKID is a 50:50 joint venture between Mukherjee's Universal Success Enterprises Limited, a company registered in Singapore, and Indonesia's Salim Group. Real estate developer Unitech Limited also had a minority equity interest in NKID, but it has recently sold its stake in the firm.

Unitech exits New Kolkata SPV

Kolkata, June 10, 2009: Sells entire 40 per cent stake to partners, won’t say why. Unitech, the country’s second-largest property developer, has exited from New Kolkata International Development (NKID) Pvt Ltd, a special purpose vehicle (SPV) formed to develop several large projects in West Bengal, including the proposed petroleum, chemicals and petrochemical investment region (PCPIR) at Nayachar.

Unitech had 40 per cent stake in NKID, which has been acquired by the Salim group and Universal Success. Sources said NKID was now a 50:50 partnership between these two; earlier, Salim had a 40 per cent stake and Universal had 20 per cent. When asked why Unitech quit NKID, the former’s managing director, Ajay Chandra, said, “I have no comments on this.”

NKID is a 51 per cent partner for the Nayachar project, while the balance is with the West Bengal Industrial Development Corporation (WBIDC). PCPIR apart, NKID has a host of projects over a 15-year period, which include an Eastern Link Highway, SME industrial estates and a deepwater port close to Nayachar island.

Industry observers said one reason behind Unitech’s exit from NKID could be the long gestation period, given the nature of the projects and the huge investments. Though NKID was incorporated in early 2007, some of the projects ran into rough weather with land acquisition, the most important being the PCPIR, which was ultimately relocated from Nandigram to Nayachar.

The investment in developing infrastructure at Nayachar would be Rs 10,000 crore, while the port could cost Rs 8,500 crore. The investments proposed in NKID projects are sizeable. On the other hand, Unitech has run up debt of around Rs 7,800 crore, and plans to cut it by at least Rs 1,000 crore this fiscal. The company has sold assets over the past few months, and aimed to raise around Rs 1,600 crore for the year ending March 31, from sale of non-core assets in Delhi, Noida, Gurgaon and Kolkata. The focus for the company and all other real estate developers now is affordable housing.

Though the Nayachar investments would be made over a long period of time, smaller investments are underway. For instance, four different studies are on. Also, Singapore-based Jurong Town Corporation have been appointed as consultants. Consultants have been appointed for the deepwater port, too. Even with the offloading of stake in NKID, Unitech would have a presence in West Bengal. The company has a residential project in New Town Rajarhat and an IT park, in partnership with the Universal Success group.

West Bengal to go ahead with chemical hub project

Kolkata, May 29: With the opposition Trinamool Congress, now part of the central government, having said it would oppose the Nayachar chemical hub project, West Bengal’s ruling Left Front government Friday said it had not received any notice yet from the central government to scrap it.

“The United Progressive Alliance (UPA) government had given us the green signal to set up the Nayachar project. And so far, we have not received anything from their end which says ‘no’ to the chemical hub proposal,” state Industry Minister Nirupam Sen told reporters here.

He said the West Bengal government is hopeful of implementing the project, located in East Midnapore district, despite the Trinamool Congress’ attempts to thwart it."So long there is Central approval for the chemical hub project at Nayachar, we will go ahead with it. We have no information that the project will be cancelled,"Sen said.“We will go ahead with it for as long as the approval [for the project] is there. Later, if there is a change then we will have to see,” he said emerging from a Communist Party of India(Marxist) State Secretariat meeting.

Trinamool Congress chief and Railway Minister Mamata Banerjee has said she will fight the chemical project tooth and nail.

Senior Communist Party of India-Marxist (CPI-M) leader and party’s central committee member Shyamal Chakraborty said the union government had sanctioned a similar petrochemical hub project in three states, including West Bengal and Gujarat.

“It’s a project which is supposed to be implemented by both the centre and state government. Now it’s time to see whether the union government prevents us from implementing it in West Bengal or gives us the nod to continue.

“If the centre stops our Nayachar project, they should ban all three pending proposals of petrochemical industries that will come up in the country,” Chakraborty said.

“But we think West Bengal has got all the required approvals except the environmental clearance,” he said.

Chemical hub at Nayachar in Bengal gets official clearance

KOLKATA, 7th April: The Centre has given the nod to the Petrochemicals, Chemicals and Petroleum Industries Region (PCPIR) project in Nayachar in East Medinipur in West Bengal, State Industry Secretary Sabyasachi Sen said here on Monday.

Talking to journalists here, he said a separate authority would have to be set up for implementing the project. The Centre is now expected to send the draft memorandum of agreement, which will have to be entered into between the Union Chemicals and Fertilizer Ministry and the State Government.

The meeting was taken by West Bengal Chief Secretary A. M. Chakraborty and attended by the Planning Department Secretary Jaya Dasgupta and the Chairman and Deputy-Chairman of the Kolkata Port Trust and the Haldia Dock Complex (HDC).

Mr. Sen said the project would come up on 204.1 sq. km. of land with the Centre helping set up the infrastructure. The State Government would set up power, drainage and other related infrastructure and. IOC is likely to be the anchor investor setting up a refinery.Mr. Sen also said the navigability of the HDC was also discussed at the meeting.

TRINAMOOLIS PREPARE GROUNDS FOR OPPOSING PETRO-CHEM PROJECT AT NAYACHAR

KOLKATA(INN): Mamta Banerjee has declared the intention long back. The fact of her intent is now being fructified by the reckless desperadoes of the Trinamulis and their Maoist minders at Nayachar, as a recent visit proved. This was out second visit to this ‘char’ land in the mouth of the Hooghly River. The Nayachar enclave straddles the river and in equidistant from Haldia and Falta industrial zones. One has to touch the shores of the vast empty land (bar for a few fishingfolk’s huts, around two dozen in number) by sailing on one of those ubiquitous motorised dinghies called in the sonorous and common Bengali noun of bhoot-bhooti.

The first time we had visited the place back in February of this year, the place looked desolate. 54 square km of the ‘char’ had been acquired by the state LF government without any resistance or opposition from the fishing folk or even the self-proclaimed ‘environmentalist lobby,’ for the union government-approved petro-chemical products investment region (PCPIR). The rest of the area was filled with shrubs and wild grass.

The change was startling when we recently paid another visit to Nayachar. All on a sudden, we noted the quick increase in the number of hutments. We also found deep dug out. A full-fledged Krishi Ucchhed Pratirodh Committee’ (KUPC) has been formed mostly with Maoist participation. The number hutments had gone up at an incredible rate, from a dozen-odd to several dozens.

The east Midnapore unit of the CPI (M) informed us that they had authentic news that 50 hardened Trinamuli-Maoist killers of Nandigram had been despatched and ‘settled in’ at the ‘char’ land. These goons carried a large cache of arms. They come mostly from the localities of Kendemari, Shrigauri, and Bachhurmari of Nandigram 1 and 2. Others have come from Sagardwip and the abutting coastal zones of south 24 Parganas and east Midnapore. The Maoist chief ‘Kishan’ has already circulated a VCD where the Nayachar issue has been noted and later transcribed into a CP (Maoist) party letter that has been propagated in Midnapore east and at Nayachar.

According to Party sources, the work of making mines and other explosives has already started at the locale of the ‘char’ land, which is thickly shrubbed and has no habitation. This is yet to be confirmed but we have no reason to disbelieve the local fishingfolk, once friendly to us, trembling in fear this time around when asked about the plethora of ‘new people,’ coming into Nayachar and going away from the island.

The desolate areas are Baolatala, Bishalaxmi, and Khejurtala. We learn that the Maoists would start the ‘action programme’ right after the Lok Sabha elections are over under ‘earnest request’ from the Trinamuli chieftains. Maoist leader Sheikh Gaushal of south 24 Parganas is apparently the ‘coordinator’ with the Trinamuli hoods of the ‘char’ land.

West Bengal offers Nayachara Island for KoPT dredging

Kolkata, Mar 26 (PTI): The West Bengal government today offered Nayachar Island for disposal of silt for dredging the navigational channels of Kolkata Port Trust to overcome the dumping ground problem.At a high level meeting in New Delhi today, the state government had offered Nayachar Island but Dredging Corporation of India and KoPT officials said it was not a viable option due to technical reasons.

The high level meeting in New Delhi was held by a senior official in the Cabinet Secretariat in presence of Union Shipping secretary, West Bengal Chief Secretary and KoPT Chairman to discuss port issues, sources said. A separate meeting would be held at the state secretariat with DCI and KoPT to resolve the issue, they said.

It was decided in the meeting that 10 additional pilots would be provided to Haldia Dock Complex shortly to tide over the pilot crisis, sources said. The meeting also attempted to know and find solution to long wait of vessels at the sandheads.

Japan trip for Nayachar

Calcutta, March 19: A state team will travel to Japan and South Korea to net investors for the Nayachar and Haldia chemical hub. Led by industry secretary Sabyasachi Sen, the team will be part of a larger delegation of the Union ministry for chemicals and fertilizers.

It will meet top officials of Mitsubishi Chemicals, Mitsui Chemicals and Itochu Corporation in Tokyo from March 23-25, followed by meetings with Korean companies — LG Chemicals and Hyundai Chemicals — for two days in Seoul. “We are going to meet officials of the rank of president and above of these companies,” Sen said. The team will leave on Saturday night.

The Union ministry delegation will have representatives from Gujarat and Andhra Pradesh, too. The trip is part of a marketing support initiative of the Centre to the three states where petrochemical hubs are coming up. Industry chamber Ficci coordinated the initiative. The Bengal team will have Nandini Chakravorty, the executive director of the West Bengal Industrial Development Corporation, which is an infrastructure partner in the Nayachar hub with Indonesia’s Salim Group.

Swapan Bhowmik, the managing director of Haldia Petrochemicals, and Sanjay Malhotra, a director of the Delhi-based Cals Refinery that is setting up a unit in Haldia, will also be in the team. An official of Singapore’s Jurong Corporation, which set up Asia’s largest chemical hub there, will be with the Bengal team. Jurong is preparing the plan for Nayachar.

In order to break the language barrier, the state has prepared all presentations in Japanese and Korean. “We have translated all documents for the project in the two languages,” Chakravorty said.This trip will be followed by a similar one to the US. Today, chief minister Buddhadeb Bhattacharjee told the Assembly that the government was just waiting for a letter from the Centre approving the Nayachar chemical hub. “The hub will change the complexion of the state as many refineries and downstream projects will come up,” he said.

West Bengal yet to receive centre’s formal approval on chemical hub

KOLKATA, 18 Mar 2009: The West Bengal government has not yet received an official communication on the recent Union Cabinet clearance for the proposed Nayachara chemical hub. This was indicated by West Bengal’s commerce & industry minister Nirupam Sen in the state Assembly on Wednesday.

Replying to a question by opposition leader Partha Chatterjee, the state industry minister said: "There is no immediate possibility of laying the foundation stone for the proposed hub. We have not yet received clearance from the environment department for the said chemical hub and there is no real difference between the chemical hub and the Petroleum, Chemical and Petrochemicals Investment Region (PCPIR). "I have read in newspapers that the Union Cabinet has given the green signal to the Nayachara chemical hub. But they (the Union government) have not yet informed us in writing," Mr Sen pointed out.

He added that the proposed chemical hub would come up on 250.19 acres and 40 per cent of the land would be used for chemical units. Mr Sen reiterated that 12 lakh people would get direct and indirect employment at the proposed hub which will produce polythene, auto components, synthetic rubber and synthetic fibre which will be used by the garments industry. The Union Cabinet at its last meeting on February 23 had reportedly cleared the proposed chemical hub at Nayachara. The Cabinet session was presided over by external affairs minister Pranab Mukherjee as the Prime Minister was then indisposed.

Meanwhile, the Trinamool Congress has already announced that it will not allow the proposed hub to come up in the pear-shaped Nayachara island near Haldia. Party chief Mamata Banerjee who held an election rally in Nandigram on March 14, had made it clear that her party would not welcome the chemical hub at Nayachara. In fact, the Trinamool Congress candidate from the Kanthi Lok Sabha seat, who also addressed the gathering on March 14, announced that they would everything it took to prevent the Nayachara chem hub from taking off.

However, it is nearly certain that the state government will not step on the gas in expediting the Nayachara venture as Lok Sabha elections have already been announced. But the government might indeed take up the issue after election results are out and the new government in Delhi is formed.

Petroleum, Chemical and Petrochemical Investment Region (PCPIR) in West Bengal cleared by Union Cabinet

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.