Petro-chemical projects may face hurdles
HYDERABAD: The Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) projects, may face challenges on account of non-availability of feed stock and issues related to land acquisitions, said Pricewaterhouse Coopers (PWC) in its report on PCPIRs released on Friday.
The PCPIR projects are proposed to be set up in six locations covering a majority of the Indian coastline. According to PWC, PCPIRs have to constantly compete with countries in the Middle East and South East Asia to attract huge investments.
'India is heavily dependent on oil imports to meet its crude oil requirements. The recent production decline from KG Basin and lack of new discoveries do not augur well for gas availability and supply security in the country,' the report said.
The report titled 'Mark up for Growth -- PCPIR in Andhra Pradesh,' was released in association with international trade body Assocham. As per the plan conceived by the Union ministry of chemicals and fertilisers in January 2007 and approved by the Cabinet Committee of Economic Affairs (CCEA) in May 2007, PCPIR is a policy aimed at promoting huge investments in the chemicals sector across the country and making it a prominent hub for both domestic and international players.
A PCPIR would be a specifically delineated investment region with an area of 250 square km with a minimum of 40 per cent processing area. It includes manufacturing facilities, along with the associated logistics and other services and required infrastructure.
The Central government has so far approved four PCPIRs - Bharuch in Gujarat, Visakhapatnam in Andhra Pradesh, Haldia in West Bengal and Paradeep in Orissa coast.
While one proposal at Cuddalore has been approved by the Cabinet and sent to Cabinet Committee on Economic Affairs, the Mangalore PCPIRproject is yet to get cabinet nod.
'Land acquisitions and getting environmental clearances could also emerge as a potential challenge for PCPIRs due to protests and other delays,' the report pointed out.
HYDERABAD: The Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) projects, may face challenges on account of non-availability of feed stock and issues related to land acquisitions, said Pricewaterhouse Coopers (PWC) in its report on PCPIRs released on Friday.
The PCPIR projects are proposed to be set up in six locations covering a majority of the Indian coastline. According to PWC, PCPIRs have to constantly compete with countries in the Middle East and South East Asia to attract huge investments.
'India is heavily dependent on oil imports to meet its crude oil requirements. The recent production decline from KG Basin and lack of new discoveries do not augur well for gas availability and supply security in the country,' the report said.
The report titled 'Mark up for Growth -- PCPIR in Andhra Pradesh,' was released in association with international trade body Assocham. As per the plan conceived by the Union ministry of chemicals and fertilisers in January 2007 and approved by the Cabinet Committee of Economic Affairs (CCEA) in May 2007, PCPIR is a policy aimed at promoting huge investments in the chemicals sector across the country and making it a prominent hub for both domestic and international players.
A PCPIR would be a specifically delineated investment region with an area of 250 square km with a minimum of 40 per cent processing area. It includes manufacturing facilities, along with the associated logistics and other services and required infrastructure.
The Central government has so far approved four PCPIRs - Bharuch in Gujarat, Visakhapatnam in Andhra Pradesh, Haldia in West Bengal and Paradeep in Orissa coast.
While one proposal at Cuddalore has been approved by the Cabinet and sent to Cabinet Committee on Economic Affairs, the Mangalore PCPIRproject is yet to get cabinet nod.
'Land acquisitions and getting environmental clearances could also emerge as a potential challenge for PCPIRs due to protests and other delays,' the report pointed out.
News Posted: 21 May, 2011
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