Centre mulls policy intervention to make PCPIRs attractive

The Centre is mulling policy interventions to make Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) projects more attractive to investors, a top government official said Friday.

"There are some issues with regard to PCPIRs. We are working on various options," Department of Chemicals and Petrochemicals Secretary P Raghavendra Rao said.

He said the government may carry out policy interventions as early as January next year for the four PCPIRs in the country.

As per the existing policy, the Centre is responsible for providing infrastructure support outside the periphery of a PCPIR while the state government is responsible for the infrastructure inside.

The Centre may now also work closely with the state government, Rao said.

He added that policy intervention could also include fiscal benefits in various forms including sourcing of feedstock at a reasonable price which remains a major concern.

He said that the basic common utilities have to be managed by agencies which will help companies concentrate on their core activity.

There were four approved PCPIRs -- one each in Gujarat, Andhra Pradesh, Odisha and Tamil Nadu. Of them, the one in Gujarat has taken off reasonably well while the others are yet to get momentum, he said.

"We are looking at the overall picture and studying models that have been developed by Singapore and other countries. We are examining various possible options to overcome the challenges so that the policy becomes more vibrant," Rao said.