The Centre would provide Rs716 crore under 'Viability Gap Funding' for infrastructure development of the PCPIR (Petroleum, Chemicals and Petrochemicals Investment Region) hub to be set up at Paradip in Orissa.
“The Centre would provide this money in two phases. While Rs388 crore would come in the first phase of the project, the balance Rs328 crore would be provided by the Government of India in the second phase”, an official source told Business Standard.
The funds to be provided by the Centre under 'Viability Gap Funding', will be utilized for various infrastructure projects of the PCPI hub like six-laning of NH-5 (A), building a greenfield coastal corridor, construction of all-new greenfield road from Bhubaneswar to Paradip \and upgradation of port infrastructure.
The six-laning of the NH-5 (A) will be taken up in the second phase of the PCPIR project at a cost of Rs76 crore. The greenfield coastal corridor will involve an expenditure of Rs410 crore out of which Rs 264 will be invested in the first phase while the remaining expenditure of Rs146 crore will be incurred in Phase-II.
The construction of all-new greenfield road from Bhubaneswar to Paradip will be taken up at a cost of Rs190 crore while Rs40 crore would be provided by the Centre for upgradation of port infrastructure.
Meanwhile, the Orissa government has committed an expenditure of Rs1796 crore on infrastructure development for the PCPIR hub. Out of the envisaged expenditure of Rs1796 crore, Rs 754 crore will be spent on development of arterial roads, Rs 465 crore on water supply, Rs 410 crore on power distribution and Rs136 crore on canal upgradation.
The PCPIR project in the state would be set up on 284.15 sq km (70,214 acres) of land spread over Jagatsnghpur and Kendrapara districts. The PCPIR hub is expected to attract investments to the tune of Rs2.74 lakh crore.
Phase-I work of the project is expected to be completed by 2015 while the entire project is scheduled for commissioning by 2030.
Of the expected overall investment figure of Rs2.74 lakh crore, the lion's share would come from the petroleum and petrochemicals sectors at Rs2.3 lakh crore followed by housing and allied infrastructure at Rs23,500 crore, external infrastructure at Rs13,634 crore and Rs3,500 crore each for chemicals & fertilizers and ancillary sectors.
The mega project is set to create employment for 6.48 lakh people which includes direct employment for 2.27 lakh people and indirect employment for 4.41 lakh others.
The turnover of this PCPIR hub is estimated at Rs4.23 lakh crore with an export potential of Rs 43,000 crore. The PCPIR hub is expected to generate taxes to the tune of Rs 42,000 crore and contribute six per cent to Orissa's Gross Domestic Product (GDP).
Oil Corporation Ltd which will be the anchor tenant of the region, will set up a 15 million tonne per annum grassroot refinery cum petrochemical complex five km south of Paradip at a cost of Rs29,777 crore.
This refinery cum petrochemical complex which needs 3300 acres of land, is scheduled for commissioning by March 2012.
The land acquisition process for PCPIR is on the fast track with the state owned Industrial Infrastructure Development Corporation of Orissa (Idco), the nodal agency for the project having filed requisition for 90 per cent of the total land requirement in .