Oil PSUs to invest over Rs 1.4 lakh cr in Andhra by FY22: Pradhan

Minister also said about $20 bn is being invested in KG basin by both public and private sector

Major oil public sector units are planning to invest over Rs 1.43 lakh crore in Andhra Pradesh in coming years which would create jobs for thousands of people in the state, Oil Minister Dharmendra Pradhan said on Friday.

He said that the investment will start from 2017-18 and all the investment will be completed by 2021-22.

Andhra Pradesh has immense hydrocarbon potential and it is going to become a major petroleum and petrochemical hub in the coming years, he said here at the CII Partnership Summit.

"Our oil PSUs are partnering with Andhra Pradesh to build new synergies in the hydrocarbon sector. The oil PSUs have invested more than Rs 9,400 crore in the last two and a half years and have plans investments of more than Rs 1.43 lakh crore in the state in the coming years," he said.

The minister also said about $20 billion is being invested in KG basin by both public and private sector companies.

"In the current scenario, KG basin is the most active area in the world ... Such huge investment is happening in deep sea projects. The ONGC's investment of Rs 78,000 crore will generate 3,000 direct jobs and thousands of indirect job in Andhra Pradesh. This will also attract world standard companies like Schlumberger in the state.

"They all will operate from the state," he added.

He said that GAIL and HPCL are jointly developing a petrochemical plant in Kakinada.

Further, he said India's first strategic oil reserve storage facility is in Visakhapatnam, which has a storage capacity of 1.33 million tonnes.

Similarly, to ensure long-term gas supply, GAIL and Andhra Pradesh government are setting up an LNG terminal of 3.5 million tons at Kakinada at an investment of Rs 2,500 crore.

The minister informed that he has also invited UAE investment in the petrochemical project in Kakinada and "they are positively considering this proposal".

He added that the world's largest oil producer is looking for investment in the sector in the state for a holistic integrated project.

BP is already in Andhra Pradesh, he said.

"With all this investment and infrastructure development, Rajamundry Kakinada-Visakhapatnam region will emerge as (a major hub)....We are also working with Andhra Pradesh for LPG connections to all the houses...The world will come here in the oil and gas sector," Pradhan said.