Gujarat, Andhra clear first hurdle for petro hubs

Andhra Pradesh and Gujarat have moved another step towards housing the country's first two dedicated Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs).

These regions will be spread over 603 sq km and 453 sq km in Visakhapatnam in Andhra Pradesh and Dahej in Gujarat, respectively.

The proposals of the two state governments have passed initial scrutiny by the Department of Chemcials and Petrochemicals, the nodal agency for implementing the programme.

The department now plans to put up the proposals for consideration by a committee of 15 central secretaries headed by Cabinet Secretary KM Chandrasekhar later this month.

The proposals will then go for final approval to the Cabinet Committee on Economic Affairs.

According to government estimates, each region is likely to see huge investments (see chart). While the central government will ensure physical infrastructure, including rail, national highways, ports, airports and telecommunication facilities in a time-bound manner, the states will be responsible for infrastructure like power, water, sewerage. States will also have to address concerns related to health, safety and environment.

The proposals for PCPIRs in Vizag and Dahej had reached the department in November 2007. Karnataka, Orissa, and West Bengal have also approached the Centre with similar proposals. The proposals are being processed.

"Already, huge investments in the petrochemical and petroleum sector are happening in Dahej and Vizag.

The PCPIR policy, announced in May 2007, envisages creation of conducive and competitive environment for setting up huge integrated petrochemical complexes, which are expected to reap the benefits of costing, networking and greater efficiency through use of common infrastructure and support services.

The government is anticipating an overall investment of $20 billion (Rs 80,000 crore) in the five such regions that it has planned.