The Cabinet Committee on Economic Affairs today approved the proposal of the Government of Tamil Nadu to set up a Petroleum Chemicals and Petrochemicals Investment Region (PCPIR). The region is expected to attract an investment of around Rs 92,160 crore.
The project will come up at Cuddalore and Nagapattinam districts in Tamil Nadu. It may be noted already the PCPIRs in Andhra Pradesh, Gujarat, West Bengal and Orissa have got approvals.
According to the Government's estimate, a total investment of around Rs 92,160 crore is expected in the Region, which includes committed investment of Rs 22,160 crore.
It was envisaged development of physical infrastructure such as roads, rail, air links, ports, water supply, power, desalination plant, CETP and others alone would cost around Rs 13,354 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 Tamil Nadu has sought support from Government of India involving a commitment Rs 1,143 crore on account of VGF funding for two road- related projects, CETP and desalination plants and Rs 1,500 crore of direct budgetary support for a rail project
The project will be in the Cuddalore and Nagapattinam districts in the coastal belt of Cuddalore, Chidambaram, Shirali and Tarangambadi Talukas. It will cover an area of 256.83 sq. kms. with a processing area of 104 sq. kms. and the balance for non-processing activities and will include residential, commercial and other social and institutional infrastructure.