The Department of Chemicals and Petrochemicals of the central government and the government of Andhra Pradesh today signed a memorandum of understanding (MoU) for setting up a petroleum, chemicals and petrochemicals investment region (PCPIR) in the Vishakhapatnam-Kakinada region of the state.
The total industrial investment in the PCPIR is estimated at Rs343,000 crore, including committed investment of Rs1,63,890 crore.
The direct and indirect employment in the PCPIR is estimated to be about 5.25 lakh and 6.73 lakh persons, respectively.
The proposal envisages development of physical infrastructure such as roads, rail, air links, ports, water supply, power etc, at a cost of Rs19,031 crore. The PCPIR policy provides that infrastructure will be created/upgraded through public private partnerships (PPPs) to the extent possible.
The state government has identified Hindustan Petroleum Corporation Limited (HPCL) and a GMR-led consortium as the anchor tenants in the proposed PCPIR. The GMR-led consortium proposes to set up a 15 MMTPA refinery and a 450,000 MTPA polypropylene unit in Kakinada SEZ with an investment of Rs31,000 crore.
The central government will provide the necessary viability gap funding (VGF) of approximately Rs1,267 crore subject to VGF guidelines existing from time to time.