Fifth PCPIR to come up in Tamil Nadu

The Union government will give its approval for the fifth Petroleum, Chemicals and Petrochemical Investment Region (PCPIR), one of the most ambitious and massive projects of the ministry of chemicals and fertilisers, in Cuddalore in Tamil Nadu in the next two to three months.

“Things are almost finalised and we are very close to notify Tamil Nadu for its first and the country’s fifth PCPIR within 2-3 months,” said M Raman, secretary, department of chemicals and petrochemicals, ministry of chemicals and fertilisers.

He was talking to newsmen at the sidelines of a seminar on the prevalent issues in the specialty chemical industry in India organised by the Confederation of Indian Industries (CII) on Thursday.

He said once the notification comes, companies can look forward to major investments and huge capacity expansions in the state, and enjoy several incentives.

PCPIR, a plan mooted by the the ministry of chemicals and fertilisers in January 2007 and approved by the Cabinet Committee of Economic Affairs (CCEA) in May 2007, is a policy aimed at promoting huge investments in the chemicals sector in the country and making it a prominent hub for both domestic and international players.

According to the ministry’s website, a PCPIR would be a specifically delineated investment region with an area of around 250 square kilometres planned for the establishment of manufacturing facilities for domestic and export-led production in petroleum, chemicals & petrochemicals, along with the associated services and infrastructure.

It would be a combination of production units, public utilities, logistics, environmental protection mechanisms, residential areas and administrative services. There will be a processing area, where the manufacturing facilities, along with associated logistics and other services, and required infrastructure will be located, and a non-processing area to include residential, commercial and other social and institutional infrastructure.

“Out of the total 250 square kilometres, around 100 square kilometres will be under processing areas, and the rest is left for other amenities. In this way, the displacement of people from the region are also minimised,” said Raman.

A typical PCPIR may also include one or more Special Economic Zones, industrial parks, Free Trade & Warehousing Zones, export oriented units or growth centres, duly notified under the relevant Central or state legislation or policy with all the benefits available under the relevant legislation or policy kept intact in these zones, the ministry website said.

Raman said out of the four PCPIRs so far notified by the government, the Dahej project in Gujarat has picked up
very fast and some huge investments have already been committed. “The others are also catching pace soon,” he added.

The four PCPIRs so far approved are at Dahej in Gujarat, Haldia in West Bengal, Paradip in Orissa and Vishakhapatnam in Andhra Pradesh. Each notified zone is expected to bring in an investment, both domestic and international, to the tune of `2 lakh crore to `3 lakh crore, said Raman.