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Government of India
Ministry of Chemicals and Fertilizers
23-December-2010 16:55 IST
Orissa Government’s Proposal for Hosting PCPIR at Paradeep Approved by CCEA This Year
Sixth India Chem 2010 Organised

 

PETROLEUM, CHEMICAL PETROCHEMICAL INVESTMENT REGIONS (PCPIRS) POLICY

 

THE POLICY

i)          The PCPIR Policy is a window to ensure the adoption of a holistic approach to promote the petroleum, chemicals and petrochemical sectors in an integrated and environment friendly manner on a large scale. Such integrated PCPIRs would reap the benefits of co-siting, networking and greater efficiency through use of common infrastructure and support services.

ii)         The PCPIR is a specifically delineated investment region having an area of about 250 sq kms (with minimum 40% of the designated area earmarked for processing activities). This region will be a combination of production projects, public utilities, logistics, environmental protection, residential areas and administrative services.

iii)        The Cabinet Committee on Economic Affairs (CCEA), in its meeting held on 8th March 2007 approved the Policy Resolution for setting up of PCPIRs  As per the PCPIR Policy, Government of India is to ensure availability of external physical infrastructure linkages to the PCPIR including Rail, Road (National Highways), Ports, Airports and Telecom in a time bound manner. This infrastructure will be created/upgraded through Public Private Partnerships to the extent possible and the Central Government will provide necessary viability gap funding (VGF) through existing schemes. 

APPROVAL OF PCPIRs & CURRENT STATUS

Proposals of the Govts of AP, Gujarat and West Bengal were approved by the CCEA in its meeting of 23 February 2009. These PCPIRs in Vishakhapatnam, Dahej and Haldia are expected to create infrastructure worth `39,744 crore. The industrial investment in these regions is expected to be to the tune of  `4,86,180 crore and the employment generation is expected to be to the tune of about 30 Lakh persons over a period of a time. 

Memorandum of Agreement have since been signed between the Government of India represented by Department of Chemicals and Petrochemicals and the three State Governments duly indicating the

respective commitments, with timelines for further steps to be taken by the Central and State Governments.

vi)        A monitoring mechanism chaired by Secretary (C&PC) has been established to review the progress in respect of each of these PCPIRs.  The State Governments have made significant progress in the process of environmental clearance, completion of infrastructure projects and attracting further investments as outlined below:

West Bengal PCPIR

  • Ministry of Environment and Forests have approved terms of reference of the Environment Impact Assessment.  The EIA is likely to be completed as per schedule.
  • Completion of IOCL’s upgradation of the 6 MMTPA refinery to 7.5 MMTPA.
  • Constitution of the West Bengal PCPIR Management Board and notification to this effect.
  • Notification of the PCPIR complete.
  • Launch of website www.wbpcpir.com
  • Signing of Power Purchase Agreement with the Power Tenant with a committed investment of `12870 crore
  • Signing of MoU with Air Liquide

Gujarat PCPIR

  • MoU has been signed between the State Government and the Anchor Tenant
  • The PCPIR has been notified under the Special Investment Region (SIR) Act.   28.78 sq. kms. have been acquired
  • Completion of a detailed study of 18 villages involving rehabilitation. 
  • Terms of Reference of EIA study have been sent to M/o E&F for approval
  • 60 to 70% of land has been acquired
  • 70,000 crore of investment has been attracted since the notification of the PCPIR.
  • Petronet LNG is setting up a 1200 mega watt power plant.

Andhra Pradesh PCPIR

  • Feasibility Study for the rail line linking APSEZ to Gangavaram Port has been awarded to RITES Limited.
  • Acquisition of additional 34.77 sq.km of the processing land
  • Process of selection of consultant for preparation of Master Plan under way
  • Constitution of a Special Development Authority to function as Management Board
  • Engaging of EPTRI as consultant for EIA studies
  • Additional committed investments to the tune of ` 9600 crore
  • Notification of the PCPIR is completed.

vii)       The Department of Chemicals and Petrochemicals has actively showcased and promoted the PCPIRs through various investor meets, exhibitions and national and international road shows.

viii)      The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of the Government of Orissa for hosting a PCPIR at Paradeep in the Jagatsinghpur and Kendrapara districts covering an area of 284.15 sq kms with a processing area of 123.014 sq kms (43.29%).  Indian Oil Corporation Ltd. (IOCL) has been identified as the Anchor Tenant for the Orissa PCPIR and will set up a 15 MMTPA grassroot refinery at Paradeep in the first phase at a cost of  `29,777 crore.  Total investment of about `277,734 crores is expected in the OPCPIR, with total employment generation expected to be about 6,48,000 persons comprising direct employment to 2.27 lakh persons and indirect employment to 4.21 lakh persons.  The PCPIR envisages total investment of `13634 crores towards external infrastructure including `716 crore of support from Govt of India by way of VGF. 

ix)        Another proposal from Government of Tamil Nadul for setting up a PCPIR at Cuddalore and Nagapattinam has been considered by concerned Departments/Ministries of GoI and the outstanding issues based on their comments have now been resolved through an inter ministerial meeting chaired by Secretary (C&PC).  Once the views expressed by various Ministries/ Departments are suitably incorporated, the proposal will be placed before the High Powered Committee chaired by the Cabinet Secretary. The total investment estimated in the region is `99,750 crores.  The total estimated investment in external infrastructure of  `13,800 crore includes support from Government of India to the tune of `5120 crore. 

ASSAM GAS CRACKER PROJECT:-


The Assam Gas Cracker Project has made substantial progress during 2010-11. There were some delays in the initial phases but the implementation plan has been reworked and slippages are being arrested to prevent further delay in completion of the project. The progresses achieved so far in the project during the year are indicated below:-

• The overall physical progress of the project as on 15.11.2010 is 26.4% as against the cumulative scheduled target of 50%.

• Cumulative expenditure incurred (as on 30.11.2010) on the project is `1325.73 crores. Out of this, the expenditure incurred during 2010-11 alone is `571.71 crores.  Initially, only `212.74 crores was provided in BE 2010-11.  But due to the efforts made by the Department, the allocation has been increased by additional `579.00 crores taking the total allocation to `791.74 crores for the current year.  So far, Department has released `966.48 crores towards Capital Subsidy to BCPL, of which `512.74 crores have been released during 2010-11.

• Physical progress on site has picked up during 2010-11. 64 buildings & infrastructure facilities are currently under construction. Construction of Bachelor & Guest House accommodation, CISF barracks & Armory at BCPL Township has been completed. Civil & structural works for all the process units namely Cracker, polyethylene & polypropylene units and Gas processing, Gas sweetening & Gas de-hydration units are under process.

  • Contracts have been awarded to Technology Licensors for LLDPE/HDPE and PP Units. Major packages viz. Captive Power Plant and Gas turbine Centrifugal Compressor have also been ordered. All 16 critical Material Requisition (MRs) and 10 critical Tenders have been ordered/awarded.

• The Project is closely monitored by the Monitoring Committee headed by Secretary (C&PC) and in the Prime Minister’s Office (PMO) by Principal Secretary to Prime Minister.

CHEMICAL WEAPONS CONVENTION

            India, a signatory to the Chemical Weapons Convention (CWC), has a fairly large chemical industry which falls under the ambit of the CWC.  The Department of Chemicals and Petrochemicals has so far successfully hosted 92 OPCW (Organization for the Prohibition of Chemical Weapons) inspections including 17 in 2010.  Help desks have been set up at Vadodara, Mumbai, Chennai, Hyderabad, Kolkatta and Delhi, covering the entire country for facilitating compliance with CWC obligations by the Indian Chemical Industry.

 

India Chem Events

To promote the Indian Chemical Industry, the Govt. of India, Department of Chemicals & Petrochemicals , Department of Pharmaceuticals & FICCI have jointly been organising the "India Chem" series of events every alternate year. These events provide a platform to the Indian chemical industry to showcase its potential to an international audience as also the participation of major international players in the chemical, petrochemical and pharmaceutical sectors exposes the Indian industry to the international developments. The sixth edition of INDIA CHEM-International Exhibition & Conference was held from October 28th-30th, 2010, at   Mumbai. This was inaugurated by Hon’ble President of India.   India Chem 2010 was a great success and the participants benefited by the overwhelming business response. It was truly an international event, as reflected by the fact that out of total 272 companies taking part in the event, as many as 139 were from abroad from 12 countries.  There were 18832 business visitors from 60 countries .

NATIONAL POLICY ON PETROCHEMICALS:-

Under the National Policy on Petrochemicals, the scheme on ‘National Awards for Technology Innovations in Petrochemicals and downstream Plastic Processing Industry’, ‘Setting up of Centres of Excellence in polymer technology’ and ‘Setting up of dedicated Plastic Parks to promote a cluster approach in the areas of development of plastic applications & plastic recycling’ has been formulated for implementation during 2010-11. All the three schemes have been uploaded on the website of the Department of Chemicals & Petrochemicals for wide publicity. Central Institute of Plastic Engineering & Technology (CIPET) has been entrusted with all the work relating to processing of applications including the organization of ‘National Award Function for Technology Innovation’ during 2010-11. The details of the schemes have been advertised by CIPET seeking nomination by 15th November, 2010. So far, CIPET have received 80 nominations.  These are under examination by an ‘Experts Standing Committee on Awards’ constituted for the same. Department has received 13 proposals for ‘Setting up of Centres of Excellence’ from various academic/ research institutions working in the fields of polymers. Six short listed institutions have been requested to present their proposals. An expert panel has also been constituted to consider the same. The scheme for setting up dedicated Plastic Parks has been circulated to the State Governments.  Simultaneously, the process for engaging a Project Manager has also been initiated.

HINDUSTAN INSECTICIDES LIMITED (HIL):

The company is producing Agro-Pesticides which are an important input for agriculture. It is also the sole manufacturer of DDT to meet the demand of National Vector Boarne Disease Control Programme (NVBDCP) launched by Government of India.

As a result of revival package, HIL made a profit of `5.66 Crore in 2006-07,  `6.52 crore in 2007-08 and `2.70 crore in 2008-09 and `3.06 crores in 2009-10. The company has come out of BIFR in September, 2007 and thereafter it has been making profits regularly. Company got ‘Very Good’ rating for the year 2008-09 and on the basis of self evaluation is poised for ‘Excellent’ rating for the performance for the year 2009-10.

HINDUSTAN ORGANIC CHEMICALS LIMITED (HOCL):

 The Company was set up with the objective of attaining self reliance in basic organic chemicals. In fact this was the first endeavor to indigenize manufacture of basic chemicals and to reduce country’s dependence on imports of vital organic chemicals. The company has two units located at Rasayani (Maharashtra) and Kochi (Kerala).

As a result of rehabilitation package, company made a profit of `17.04 Crore during 2006-07 and `13.61 crore in 2007-08. The company came out of BIFR in May, 2008. Due to Economic global melt-down during 2008-09, when the prices of the raw materials experienced unprecedented fall resulting in large stock losses of raw materials, intermediate and finished products, the Company suffered a loss of `25.27 crores. The company continued to make losses during 2009-10 which amounted to `83.07 crores. During the present financial year 2010-11, there is an improvement in the performance of the company particularly from Kochi Unit.  During the first two quarters, the company has made a net profit of `21.27 crore against MoU target of (-) `7.94 crores. 

INSTITUE OF PESTICIDES FORMULATION TECHNOLOGY (IPFT)

During the year 2010, IPFT participated in the 28th Proficiency Test of OPCW (Organization for Prohibition of Chemical Weapons) in October-November, 2010.  IPFT have also received NABL accreditation for Pesticide Formulation analysis for another two years.

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