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Oil PSUs ask Andhra govt for funds to set up Kakinada project

Press Trust of India  |  New Delhi 

Oil PSUs want to provide viability gap funding for them to set up a Rs 32,901-crore petrochemical complex in the state, Dharmendra said today.

(HPCL) and GAIL had in January last year signed an MoU with for setting up a petrochemical complex at Kakinada, he said in a written reply in Lok Sabha.

"Feasibility study has been carried out for the petrochemical complex. Oil PSUs have indicated to the of that viability gap funding is necessary to make the project viable," he said.

He however did not give details of how much support have HPCL-GAIL combine asked for.

The petrochemical complex at Kakinada was among the projects envisaged in the special package announced in 2014 to boost economy of Andhra Pradesh after Telangana was carved out of it.

The state had previously asked the Centre to meet the viability gap of Rs 5,000 crore for the project.

Last week, and Andhra Pradesh withdrew his from the Narendra Modi government, saying the Centre has failed to respect the sentiments of the people of Andhra Pradesh by not granting the Special Category Status.

said (IOC), (BPCL) and HPCL have formed a joint venture, Ratnagiri Refinery Petrochemicals, for setting up a 60 million tonne per annum grassroot refinery cum petrochemical complex in at an estimated cost of Rs 3.5 lakh crore.

"Refinery sector has been delicensed in 1998. Post de-licensing, any public sector or private sector entity can set up a refinery depending upon techno-commercial viability of the project," he added.

has 23 refineries with a total capacity of 247.566 million tonne per annum.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 12 2018. 17:00 IST