Petrochemical region attracts big money

The Petroleum Chemical and Petrochemical Investment Region (PCPIR) proposed between Visakhapatnam and Kakinada has received an investment commitment of around $38 billion (around Rs 1,82,400 crore).

A senior state government representative said of the total $38 billion, anchor projects are worth $16.22 billion (Rs 77,760 crore) and PCP projects are worth $14.59 billion (Rs 70,032 crore), while the utilities and infrastructure projects stand at around $7.19 billion (Rs 34,512 core).

The region is expected to see an investment of another over $50 billion (Rs 2,40,000 crore).

The projected investment from the petroleum and petrochemical sector is $48 billion (Rs 2,30,400 crore), while from chemicals, pharma and fertiliser this is around $4.4 billion (Rs 21,120 crore). Housing and allied infrastructure would bring in $7.78 billion (Rs 37,344 crore) and external infrastructure around $4.4 billion (Rs 21,120 crore), he said.

The region is expected to create employment for 1.2 million people, of which direct would be 530,000 and indirect 670,000.

Meanwhile, the state government is planning to strengthen its infrastructure, especially power, with an investment of Rs 35,000 crore, and minor ports with an investment of Rs 8,000-9,000 crore.

Speaking to Business Standard recently in Chennai, Mohammed Ali Shabbir, state minister for energy and coal and minorities welfare, said in the next four years the state would add 15,000 Mw of power to the existing 12,343 Mw.

The government has approved 21 power projects, including the ultra mega power project being developed by Reliance Power. Of the total projects, the government would develop 12 projects with an investment of around Rs 35,000 crore.

On the minor ports’ front, Shabbir said the government was planning to develop minor ports, which would cater to the upcoming investment region and SEZs.