The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved the Tamil Nadu government's proposal for setting up a petroleum, chemicals and petrochemicals investment region (PCPIR) in Cuddalore and Nagapattinam in the state.
The fifth petrochemical investment region to be approved after PCPIRs in Andhra Pradesh, Gujarat, West Bengal and Orissa, the Tamil Nadu PCPIR is expected to attract investments to the tune of Rs92,160 crore, including committed investment of Rs22,160 crore,'' home minister P Chidambaram said after a CCEA meeting.
The TN petrochemical investment region envisages development of physical infrastructure such as roads, rail, air links, ports, water supply, power, desalination plant, CETP etc at a total cost of Rs13,354 crore.
The PCPIR policy prescribes that infrastructure will be created/upgraded through public private partnerships to the extent possible and the central government will provide the necessary viability gap funding (VGF). Accordingly, the government of Tamil Nadu has sought sthe centre's upport involving a commitment Rs1,143 crore on account of VGF funding for two road-related projects, CETP and desalination plants and Rs1,500 crore of direct budgetary support for a rail project.
The project, to be set up in the Cuddalore and Nagapattinam districts in the coastal belt of Cuddalore, Chidambaram, Shirali and Tarangambadi Talukas, will cover a total area of 256.83 sq. km, with a processing area of 104 sq. km and the balance for non-processing activities and will include residential, commercial and other social and institutional infrastructure.
Nagarjuna Oil Corporation Limited (NOCL), a joint venture of Tamilnadu Industrial Development Corporation Limited (TIDCO) and Nagarjuna Fertilisers and Chemicals Limited (NFCL), the flagship company of Nagarjuna Group, has been identified as one of the anchor tenants for the PCPIR.