CHENNAI: Work on the proposed Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) in the Cuddalore and Nagapattinam districts of Tamil Nadu is expected to start in another six months. The State Government is in the process of sending the proposal for the approval of the Central Government.
The 318 sq km TNPCPIR when completed in 10 years would generate direct employment for 200,000 people and indirect employment for 800,000.
The region would encompass towns and 55 villages and attract an investment of Rs 13,800 crore. Of this, the Central Government would fund Rs 5,120 crore and the State Government Rs 1,500. For the balance, the private sector would invest Rs 7,180 crore through the public private partnership- bidding route.
The combined project cost of NOCL, CPCL, downstream units and infrastructure costs is estimated at Rs 76,500 crore. It was in May 2007 that the Department of Chemicals and Petrochemicals had announced the Policy for promotion of PCPIRs. The idea was to promote investments in the chemical and petrochemical sectors so that India Inc could develop as a hub for both domestic and international markets.
“Land has already been acquired for public utilities like roads. The attraction of the PCPIR is that the State and Central governments will pump in money for infrastructure development.
While the Central Government will develop the National Highway, railways and ports, the State Government will take care of water, power and sewerage connectivity,” an official of Tamil Nadu Industrial Development Corp (TIDCO) told Express.
A six million tonne per year crude thruput capacity petroleum refinery project of Nagarjuna Oil Corp Ltd (NOCL), a joint venture of TIDCO costing Rs 5,000 crore, has been designated as the Anchor Unit in the proposed PCPIR, due to logistical advantages. This anchor unit is expected to be in operation by 2009 end and could generate a total investment of Rs 12,766 crore over the next eight years, including a Petroleum SEZ.
Nagarjuna Fertilisers and Chemicals Ltd holds a 51 per cent equity stake in the refinery project, Tatas 30 per cent, Cuddalore Port 10 per cent, TIDCO five per cent and Krupp Uhde of Germany another five per cent.
“Proximity to the Cuddalore port will enable crude to be brought in for refining and enable export of finished products,” said the official. The chemicals and petrochemical industry requires good infrastructure, including ports with adequate berthing facilities and storage terminals and road linkages with highways. These would be available in the PCPIR.
Dry agricultural land forms the chunk of the region (44 per cent) with land under habitation about four per cent, so land acquisition is not expected to be an issue.
Chennai Petroleum Corp Ltd’s (CPCL) 15 million metric tonnes per annum integrated refinery cum petrochemical complex would also be located within the Region.
Numerous downstream polymer, chemicals and plastic-based units and support infrastructure would also find place in the PCPIR.
Under the PCPIR Policy, the Region would house manufacturing facilities for domestic and export led production in petroleum, chemicals and petrochemicals.
However, the Policy stipulates no additional incentives for the PCPIR on the lines of a Special Economic Zone. But a SEZ housed in the PCPIR would be entitled to such incentives.
The TNPCPIR Development Authority would be formed to develop the PCPIR. A Special Purpose Vehicle, TNPCPIR Company Ltd would manage the PCPIR. TIDCO is likely to hold a 51 per cent stake in the company with partners expected to be NOCL and private developers.