Petro hubs set to debut in Andhra Pradesh, Gujarat

NEW DELHI: Andhra Pradesh and Gujarat are set to have the first two petroleum, chemical and petrochemical investment regions (PCPIR) in the country with public sector oil majors taking the plunge.

Hindustan Petroleum Corporation (HPCL) and Oil & Natural Gas Corporation (ONGC) would set up the mother units in the PCPIR coming up in the Visakhapatnam-Kakinada industrial belt. HPCL would invest Rs 30,000 crore in five years to set up a new naphtha cracker and to expand its refining capacity.

ONGC would set up a refinery in Kakinada with an investment of Rs 22,000 crore, Andhra Pradesh Industrial Infrastructure Corp vice-chairman & MD BP Acharya told ET after the government released the PCPIR policy here on Tuesday. “Acquiring land is not an issue as we already possess more than the required 100-sq km processing area,” he said.

Expecting $50 billion investment in the PCPIR in 10 years, Andhra Pradesh is in talks with MNCs such as DuPont and Bayer to set up manufacturing plants. The state government has already spent Rs 500 crore for creating the necessary infrastructure including a dedicated port for the Vizag zone, he said.

In the PCPIR coming up in Gujarat, ONGC would set up the mother unit. While the units would ensure feedstock supply, the state governments would provide infrastructure for the downstream processing units that have great potential for job creation.

The central government would ensure that the state’s role is minimal in the land acquisition. While unveiling the policy, chemicals and fertilisers minister Ram Vilas Paswan told reporters that land transfer would take place directly between the land owner and the builder as far as possible.

Also, states would implement a humane rehabilitation policy, he said. Around six PCPIRs are likely to come up in the country with an average investment of $15-20 billion.