Policy Resolution for Promotion of Petroleum, Chemicals and Petrochemical Investment Regions (PCPIRs)
10 May 2007
1. The Petroleum, Chemicals and Petrochemical industry in India is well established and has recorded a steady growth over the years. The industry offers a wide scope for development that contributes positively to economic growth and regional development. The future outlook for the industry is bright with positive developments anticipated in various chemical sub sectors.
2. To promote investment in this sector and make the country an important hub for both domestic and international markets, the government has decided to attract major investment, both domestic and foreign, by providing a transparent and investment friendly policy and facility regime under which integrated Petroleum, Chemicals & Petrochemical Investment Regions (PCPIRs) may be set up. The PCPIRs would reap the benefits of co-siting, networking and greater efficiency through the use of common infrastructure and support services. They would have high-class infrastructure, and provide a competitive environment conducive for setting up businesses. They would thus result in a boost to manufacturing, augmentation of exports and generation of employment.
3. A Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) would be a specifically delineated investment region with an area of around 250 square kilometers planned for the establishment of manufacturing facilities for domestic and export led production in petroleum, chemicals & petrochemicals, alongwith the associated services and infrastructure.
4. A PCPIR would be a combination of production units, public utilities, logistics, environmental protection mechanisms, residential areas and administrative services. It would have a processing area, where the manufacturing facilities, alongwith 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. The minimum processing area for the PCPIR will be about 40% of the total designated area, i.e., around 100 sq km. The processing area may or may not be contiguous.
5. The PCPIR may 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. All the benefits available under the relevant legislation or policy will continue to remain available to the said Zones or Parks, as the case may be, forming part of the PCPIR.
6. The PCPIR could cover existing settlements/industries & estates/ services and would therefore benefit from and be complementary to the region. The concerned state government may not acquire the entire area comprising the PCPIR, but it will notify the same under the relevant Act for proper planning and zoning to ensure coordinated development.