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Government of India
Cabinet Committee on Economic Affairs (CCEA)
07-December-2010 20:07 IST
Proposal of the Government of Orissa to Set up a Petroleum Chemicals and Petrochemicals Investment Region (PCPIR)
The Cabinet Committee on Economic Affairs has approved the proposal of the Government of Orissa to set up a Petroleum Chemicals and Petrochemicals Investment Region (PCPIR) in Paradeep. This is the fourth PCPIR which has been approved after PCPIRs in Andhra Pradesh, Gujarat and West Bengal.

A total investment of about ` 277,734 crore is expected in the Orissa Petroleum Chemicals and Petrochemicals Investment Region (OPCPIR), which includes a committed investment of ` 29,777 crore. The proposal envisages development of physical infrastructure such as roads, rail, air links, ports, water supply, power etc. at a cost of ` 13,634 crore. The PCPIR policy prescribes that infrastructure will be created/upgraded through Public Private Partnerships to the extent possible and Central Government will provide the necessary Viability Gap Funding (VGF). Accordingly, Government of Orissa (GoO) has sought support from Government of India involving a commitment ` 716 crore on account of VGF funding for one port and three road-related projects.

The total employment generation from the OPCPIR is expected to be about 6.48 lakh persons comprising direct employment to 2.27 lakh persons.

The PCPIR policy is a window to ensure the 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. The idea is to ensure the setting up of industrial estates in a planned manner with a view to achieve synergies and for value added manufacturing, research and development.

The Government of Orissa proposes to set up a PCPIR at Paradeep extending over parts of Kujang and Ersama blocks of Jagatsinghpur district and Mahakalpada and Marsaghai blocks of Kendrapara district.

The State Government proposes to implement the Orissa Petroleum Chemicals and Petrochemical Investment Region (OPCPIR) under the Orissa Development Authorities Act, 1982, which is an existing State law. The State Government proposes to constitute the Greater Orissa Paradeep Development Authority as the authority in charge of the development of the Paradeep PCPIR.

The delineated region has a strong industrial base with major processing activities at present including Paradeep Phosphates Ltd., IFFCO's Fertiliser Plant, Essar Steel Plant, Goa Carbons (Paradeep Carbons Ltd), Paradeep Port etc.

Indian Oil Corporation Ltd. (IOCL) has been identified as the Anchor Tenant for the Orissa PCPIR. IOCL signed a MoU with GoO in 2004 for setting up a 15 MMTPA grassroot refinery at Paradeep in the first phase at a cost of ` 29,777 crore. The Refinery is likely to be commissioned by March 2012 and should be fully stabilized by November 2012. The Refinery will have a Crude and vacuum Distillation Unit, a Hydrocracking Unit, a Delayed Coker Unit and other secondary processing facilities. It will also have an Integrated Gassification Combined Cycle Plant for production of steam, power and hydrogen from petroleum coke for captive use in the refinery at the cost of about ` 935 crores. A petrochemical complex will be set up at a later date depending on the market conditions.

A Preliminary Environment Assessment Report (EIA) has been conducted. The State Government will carry out a detailed EIA as per the EIA notification.

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