Kerala government gives in-principle nod to purchase 487 acres of land from FACT for Petrochemical park
Giving a fillip to Kinfra's efforts to set up a petrochemical complex in Kochi, the state government has given in-principal approval to purchase around 487 acres of land owned by FACT in Ambalamugal.
THIRUVANANTHAPURAM: Giving a fillip to Kinfra's efforts to set up a petrochemical complex in Kochi, the state government has given in-principal approval to purchase around 487 acres of land owned by FACT in Ambalamugal.
While the government has cut down on the 600 acres proposed to be acquired, around 30 per cent of the land will be set aside for maintaining green vegetation. Of the total area available for acquisition, the government has to pay FACT Rs 1 crore per acre for the first 150 acres. The remaining land will cost Rs 2.47 crore, totalling a little less than Rs 1,000 crore as land value. The government has also extended the period of MoU signed with FACT to another six months to keep the project alive in the wake of a request from its managing director, Manoj Mishra. He sought an extension of six months for the MoU which ended on March 31, 2018, citing plans had not progressed as per the MoU.
Industries Minister A C Moideen told Express the FACT authorities sought additional time as they are yet to get permission from the Central Government to hand the land over to the state government.
"This is largely due to procedural delays and once the land is handed over to the state government, Kinfra will be able to start work at the proposed site. A lot of industrial units have come forward to set up units inside the park," he said.
Kinfra MD K A Santhoshkumar said, since the FACT is a Central PSU, they need a Union Cabinet approval to execute the deal.
"They have submitted a proposal to this effect. There should not be any major delay from the side of the Union Government in giving the nod to the proposal as FACT is looking for a resurgence after having infused money," he said.
Earlier, the cost to establish the Petrochemical Park was estimated at Rs 1,864 crore (including land cost of Rs 1,264 crore).
Kinfra officers said the project will now cost much lesser, in tune with the reduction in the area of land being brought from FACT.
The Rs 1,000-crore (approximate) land deal will catalyse economic growth in the region as the Petrochemical Park will pave the way for an estimated investment of Rs 4,000 crore in industrial ventures in Kochi. It is expected to generate direct employment for 5,000 persons and indirect employment for 15,000 persons through the industrial ventures inside the park.