PETROLEUM, CHEMICAL PETROCHEMICAL
INVESTMENT REGIONS (PCPIRS) POLICY
THE POLICY
i) The PCPIR Policy is a window to ensure
the adoption of a holistic approach to promote the petroleum, chemicals and petrochemical
sectors in an integrated and environment friendly manner on a large scale. Such
integrated PCPIRs would reap the benefits of co-siting, networking and greater
efficiency through use of common infrastructure and support services.
ii) The PCPIR is a specifically delineated
investment region having an area of about 250 sq kms (with minimum 40% of the
designated area earmarked for processing activities). This region will be a
combination of production projects, public utilities, logistics, environmental
protection, residential areas and administrative services.
iii) The Cabinet Committee on Economic
Affairs (CCEA), in its meeting held on 8th March 2007 approved the Policy
Resolution for setting up of PCPIRs As
per the PCPIR Policy, Government of India is to ensure availability of external
physical infrastructure linkages to the PCPIR including Rail, Road (National
Highways), Ports, Airports and Telecom in a time bound manner. This
infrastructure will be created/upgraded through Public Private Partnerships to
the extent possible and the Central Government will provide necessary viability
gap funding (VGF) through existing schemes.
APPROVAL
OF PCPIRs & CURRENT STATUS
Proposals of the Govts
of AP, Gujarat and West Bengal were approved by the CCEA in its meeting of 23
February 2009. These PCPIRs in Vishakhapatnam, Dahej and Haldia are expected to
create infrastructure worth `39,744 crore. The industrial investment in these
regions is expected to be to the tune of
`4,86,180 crore and the employment generation is expected to be to the
tune of about 30 Lakh persons over a period of a time.
Memorandum of
Agreement have since been signed between the Government of India represented by
Department of Chemicals and Petrochemicals and the three State Governments duly
indicating the
respective
commitments, with timelines for further steps to be taken by the Central and
State Governments.
vi) A monitoring mechanism chaired by
Secretary (C&PC) has been established to review the progress in respect of
each of these PCPIRs. The State
Governments have made significant progress in the process of environmental
clearance, completion of infrastructure projects and attracting further
investments as outlined below:
West
Bengal PCPIR
- Ministry
of Environment and Forests have approved terms of reference of the
Environment Impact Assessment. The
EIA is likely to be completed as per schedule.
- Completion of
IOCL’s upgradation of the 6 MMTPA refinery to 7.5 MMTPA.
- Constitution of
the West Bengal PCPIR Management Board and notification to this effect.
- Notification of
the PCPIR complete.
- Launch of website
www.wbpcpir.com
- Signing of Power
Purchase Agreement with the Power Tenant with a committed investment of
`12870 crore
- Signing of MoU
with Air Liquide
Gujarat
PCPIR
- MoU has been
signed between the State Government and the Anchor Tenant
- The PCPIR has
been notified under the Special Investment Region (SIR) Act. 28.78 sq. kms. have been acquired
- Completion of a
detailed study of 18 villages involving rehabilitation.
- Terms of
Reference of EIA study have been sent to M/o E&F for approval
- 60 to 70% of land
has been acquired
- 70,000 crore of
investment has been attracted since the notification of the PCPIR.
- Petronet LNG is setting
up a 1200 mega watt power plant.
Andhra
Pradesh PCPIR
- Feasibility Study
for the rail line linking APSEZ to Gangavaram Port has been awarded to
RITES Limited.
- Acquisition of
additional 34.77 sq.km of the processing land
- Process of
selection of consultant for preparation of Master Plan under way
- Constitution of a
Special Development Authority to function as Management Board
- Engaging of EPTRI
as consultant for EIA studies
- Additional
committed investments to the tune of ` 9600 crore
- Notification of
the PCPIR is completed.
vii) The Department of Chemicals and Petrochemicals has actively
showcased and promoted the PCPIRs through various investor meets, exhibitions
and national and international road shows.
viii) The Cabinet Committee on Economic Affairs (CCEA) has approved
the proposal of the Government of Orissa for hosting a PCPIR at Paradeep in the
Jagatsinghpur and Kendrapara districts covering an area of 284.15 sq kms with a
processing area of 123.014 sq kms (43.29%).
Indian Oil Corporation Ltd. (IOCL) has been identified as the Anchor
Tenant for the Orissa PCPIR and will set up a 15 MMTPA grassroot refinery at
Paradeep in the first phase at a cost of
`29,777 crore. Total investment
of about `277,734 crores is expected in the OPCPIR, with total employment
generation expected to be about 6,48,000 persons comprising direct employment
to 2.27 lakh persons and indirect employment to 4.21 lakh persons. The PCPIR envisages total investment of
`13634 crores towards external infrastructure including `716 crore of support
from Govt of India by way of VGF.
ix) Another proposal from Government of Tamil Nadul for setting
up a PCPIR at Cuddalore and Nagapattinam has been considered by concerned
Departments/Ministries of GoI and the outstanding issues based on their
comments have now been resolved through an inter ministerial meeting chaired by
Secretary (C&PC). Once the views
expressed by various Ministries/ Departments are suitably incorporated, the
proposal will be placed before the High Powered Committee chaired by the
Cabinet Secretary. The total investment estimated in the region is `99,750
crores. The total estimated investment
in external infrastructure of `13,800
crore includes support from Government of India to the tune of `5120
crore.
ASSAM
GAS CRACKER PROJECT:-
The Assam Gas Cracker Project has made substantial progress during 2010-11.
There were some delays in the initial phases but the implementation plan has
been reworked and slippages are being arrested to prevent further delay in
completion of the project. The progresses achieved so far in the project during
the year are indicated below:-
• The overall physical progress
of the project as on 15.11.2010 is 26.4% as against the cumulative scheduled
target of 50%.
• Cumulative expenditure incurred
(as on 30.11.2010) on the project is `1325.73 crores. Out of this, the
expenditure incurred during 2010-11 alone is `571.71 crores. Initially,
only `212.74 crores was provided in BE 2010-11. But due to the efforts
made by the Department, the allocation has been increased by additional `579.00
crores taking the total allocation to `791.74 crores for the current
year. So far, Department has released `966.48 crores towards Capital
Subsidy to BCPL, of which `512.74 crores have been released during 2010-11.
• Physical progress on
site has picked up during 2010-11. 64 buildings & infrastructure facilities
are currently under construction. Construction of Bachelor & Guest House
accommodation, CISF barracks & Armory at BCPL Township has been completed.
Civil & structural works for all the process units namely Cracker,
polyethylene & polypropylene units and Gas processing, Gas sweetening &
Gas de-hydration units are under process.
• Contracts
have been awarded to Technology Licensors for LLDPE/HDPE and PP Units. Major
packages viz. Captive Power Plant and Gas turbine Centrifugal Compressor have
also been ordered. All 16 critical Material Requisition (MRs) and 10 critical
Tenders have been ordered/awarded.
• The Project is
closely monitored by the Monitoring Committee headed by Secretary (C&PC)
and in the Prime Minister’s Office (PMO) by Principal Secretary to Prime
Minister.
CHEMICAL
WEAPONS CONVENTION
India,
a signatory to the Chemical Weapons Convention (CWC), has a fairly large
chemical industry which falls under the ambit of the CWC. The Department of Chemicals and
Petrochemicals has so far successfully hosted 92 OPCW (Organization for the
Prohibition of Chemical Weapons) inspections including 17 in 2010. Help desks have been set up at Vadodara, Mumbai,
Chennai, Hyderabad, Kolkatta and Delhi, covering the entire country for
facilitating compliance with CWC obligations by the Indian Chemical Industry.
India
Chem Events
To promote the Indian Chemical Industry, the Govt. of India, Department
of Chemicals & Petrochemicals , Department of Pharmaceuticals & FICCI
have jointly been organising the "India Chem" series of events every
alternate year. These events provide a platform to the Indian chemical industry
to showcase its potential to an international audience as also the
participation of major international players in the chemical, petrochemical and
pharmaceutical sectors exposes the Indian industry to the international
developments. The sixth edition of INDIA CHEM-International Exhibition &
Conference was held from October 28th-30th, 2010, at Mumbai. This was inaugurated by Hon’ble
President of India. India Chem 2010 was
a great success and the participants benefited by the overwhelming business
response. It was truly an international event, as reflected by the fact that
out of total 272 companies taking part in the event, as many as 139 were from
abroad from 12 countries. There were
18832 business visitors from 60 countries .
NATIONAL POLICY ON PETROCHEMICALS:-
Under the National
Policy on Petrochemicals, the scheme on ‘National Awards for Technology
Innovations in Petrochemicals and downstream Plastic Processing Industry’,
‘Setting up of Centres of Excellence in polymer technology’ and ‘Setting up of
dedicated Plastic Parks to promote a cluster approach in the areas of
development of plastic applications & plastic recycling’ has been
formulated for implementation during 2010-11. All the three schemes have been
uploaded on the website of the Department of Chemicals & Petrochemicals for
wide publicity. Central Institute of Plastic Engineering & Technology
(CIPET) has been entrusted with all the work relating to processing of
applications including the organization of ‘National Award Function for
Technology Innovation’ during 2010-11. The details of the schemes have been
advertised by CIPET seeking nomination by 15th November, 2010. So far, CIPET
have received 80 nominations. These are under examination by an ‘Experts
Standing Committee on Awards’ constituted for the same. Department has received
13 proposals for ‘Setting up of Centres of Excellence’ from various academic/
research institutions working in the fields of polymers. Six short listed
institutions have been requested to present their proposals. An expert panel
has also been constituted to consider the same. The scheme for setting up
dedicated Plastic Parks has been circulated to the State Governments.
Simultaneously, the process for engaging a Project Manager has also been
initiated.
HINDUSTAN
INSECTICIDES LIMITED (HIL):
The company is producing
Agro-Pesticides which are an important input for agriculture. It is also the
sole manufacturer of DDT to meet the demand of National Vector Boarne Disease
Control Programme (NVBDCP) launched by Government of India.
As a result of revival
package, HIL made a profit of `5.66 Crore in 2006-07, `6.52 crore in 2007-08 and `2.70 crore in
2008-09 and `3.06 crores in 2009-10. The company has come out of BIFR in
September, 2007 and thereafter it has been making profits regularly. Company
got ‘Very Good’ rating for the year 2008-09 and on the basis of self evaluation
is poised for ‘Excellent’ rating for the performance for the year 2009-10.
HINDUSTAN ORGANIC CHEMICALS LIMITED (HOCL):
The Company was set up with the objective of
attaining self reliance in basic organic chemicals. In fact this was the first
endeavor to indigenize manufacture of basic chemicals and to reduce country’s
dependence on imports of vital organic chemicals. The company has two units
located at Rasayani (Maharashtra) and Kochi (Kerala).
As a result of
rehabilitation package, company made a profit of `17.04 Crore during 2006-07
and `13.61 crore in 2007-08. The company came out of BIFR in May, 2008. Due to
Economic global melt-down during 2008-09, when the prices of the raw materials
experienced unprecedented fall resulting in large stock losses of raw
materials, intermediate and finished products, the Company suffered a loss of
`25.27 crores. The company continued to make losses during 2009-10 which
amounted to `83.07 crores. During the present financial year 2010-11, there is
an improvement in the performance of the company particularly from Kochi
Unit. During the first two quarters,
the company has made a net profit of `21.27 crore against MoU target of (-)
`7.94 crores.
INSTITUE
OF PESTICIDES FORMULATION TECHNOLOGY (IPFT)
During the year 2010,
IPFT participated in the 28th Proficiency Test of OPCW (Organization for
Prohibition of Chemical Weapons) in October-November, 2010. IPFT have
also received NABL accreditation for Pesticide Formulation analysis for another
two years.
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PKM/SB