Vizag-Kakinada PCPIR projected to attract an investment of $1.5 billion: IIPE Director

The Petroleum Chemical and Petrochemical Investment Region (PCPIR) proposed between Visakhapatnam and Kakinada will throw up a window of opportunities to the job-seekers as well as the investors and help create the right ecosystem to improve the industrial landscape of Andhra Pradesh. Prof VSRK Prasad, Director of Indian Institute of Petroleum Energy (IIPE), says it is definitely a dream project for the nation and more so for Andhra Pradesh, with almost $1.5 billion' worth of projected investment. It is likely to provide employment for more than 2.25 lakh people, in the expected growth of existing industry and establishment of new industries across 603 sq. km. areas between Visakhapatnam and Kakinada.

He told Bizz Buzz in an exclusive interview that it may be worth mentioning that PCPIR of Gujarat had contributed to the growth of Gujarat and thereby to the country with an investment of almost Rs 1.13 lakh crore in an area of 453 sq km generating an employment of 1.84 lakh

There are plenty of opportunities in the field of petroleum for employment. As per an UK workforce report of 2018, in the UK alone 283,000 jobs are provided in the oil and gas industry. As far as petroleum engineering graduates are concerned an US report reveals that unemployment is at 0.6% only, which implies that none are unemployed.

As a premier institute of national importance, how is IIPE-Visakhapatnam able to create high-end professionals?

Right from the starting of the institute IIPE in 2016, care is taken in the maintenance of the standards in the teaching learning process. Faculty are selected through a three-tier selection process for selecting highly talented persons. In addition, the experts from the industry and researchers from the highly reputed institutes are consistently invited for developing expert lecturers in the advanced topics.

Apart from the quality teaching, the students are involved in various training programs to create a professional approach for them. They are exposed to various competitions by participating offline wherever possible and or online competitions due to the pandemic situation. Each and every student participates essentially in an internship program with at least one in the industry. Every student takes up an opportunity to prepare a project which provides him/her a chance of exposure to industry-oriented application, thus shaping them to be good professionals in the design and the industry approach. In addition, all the students, based on their interest, have chances to participate in the research activities along with the faculty of IIPE or with the professors in other institutes of eminence.

With such exposure in academics, industrial training and designing skills through the project work and research approach, all the students have good opportunities to be shaped into the all round high-end professionals.

What is the progress of your permanent campus? When will it be ready?

The Government of Andhra Pradesh has proposed for alienation of land measuring 201 acres and 80 cents in Vangali village in Sabbavaram mandal on the outskirts of Visakhapatnam. The proposed land is also in the same Knowledge City/ Educational Hub alienated in favour of the Higher Education Department at free of cost.

On October 20, 2016, the foundation stone for the permanent campus for IIPE, was laid in the presence of higher dignitaries including Dharmendra Pradhan, then Union Minister for Petroleum and Natural Gas, M Venkaiah Naidu, the then Union Minister for Urban Housing, Information and Broadcasting. The government has handed over 201 acres and 28 cents for the permanent campus.

IIPE through MOU, on the directions of the Government of Andhra Pradesh, entrusted the work related to the construction of the compound wall at the alienated site of the land at Vangali (V) to APIIC. The APIIC has further entrusted the said work to a construction agency by following the tendering process and started the construction of the compound wall.

However, APIIC intimated that the local villagers were obstructing the work for want of settlement of their compensation and therefore requested IIPE to hand over the clear possession of the site to APIIC for execution of the work within the agreement period. IIPE is continuously pursuing the matter with the officials concerned.

As the master plan and the design of structures are ready and an MOU is signed with CPWD, once the land issue is resolved, the infrastructure development can be completed for shifting to the campus within 18 months from solving the land issues. However, for completion of the infrastructure in the campus it may take another 18 months.

What are the emerging areas in the petroleum sector with a lot of employment opportunities?

There are plenty of opportunities in the field of petroleum for employment. As per an UK workforce report of 2018, in the UK alone 283,000 jobs are provided in the oil and gas industry. As far as petroleum engineering graduates are concerned an US report reveals that unemployment is at 0.6 per cent only, which implies that none are unemployed. However, unlike software engineers, the percentage of petroleum engineering graduates placed form the campus directly/immediately may be less, though through direct recruitment by various organizations they have good potential of employment. Another important feature to be noted is that the employed petroleum engineers get quick jumps in their career and get attractive perks with a very small experience of five to ten years compared to other counterparts from various branches. In the US one of the highest starting salaries is for petroleum engineers, ranging from $78500 to $114000 per annum. The various future emerging fields for employment in this sector include the gas hydrates, shell oil gas etc.

What is the present scenario of the placements at IIPE?

For the first batch passed out from IIPE, the placements were very poor with only 15 per cent placed, due to a number of reasons beyond the control of IIPE. However, after realizing the gaps, IIPE had taken steps and for the second batch number of PSUs including HPCL, GAIL, OIL, IOCL and other lead companies including Schlumberger, L&T recruited the students from IIPE and the placements increased to 60 per cent for the second batch that passed out in 2021. For the 2022 pass-out batch it is going to be much better with about 30 per cent already placed in the companies that started visiting IIPE from this year and with about 60 per cent to be placed in the companies that were coming to our campus since last year to visit in the coming couple of months.

How is the petrochemical sector now after the prolonged spell of the pandemic?

All the industries were affected throughout the world by the pandemic situation irrespective of the country. In most of the developed countries the usual reduction sales to clear off the stock were put off as there was no sufficient stock to meet the requirement of the market and hence there are instances of increase of the prices in most of the products. Production suffered a beating and petrochemicals industries were not an exemption. There was a lot of effect on manpower in the industry. However, the petroleum & petrochemical industry could recover fast compared to other industries, in spite of the limitations of the full manpower to be restored to normalcy. After recovery by 2022-end the industry may bounce back.

How much of petroleum products are being imported by India?

IIPE: At present, India is involving imports worth about Rs 10 lakh crores in the areas of chemical and petrochemical contributing to 11 per cent of total imports. If all the PCPIRs are completed then the extent of imports can be reduced to a significant extent.

Though LNG is the future, are we able to increase required production?

India has been the fourth largest importer of LNG. Its production had shown a decline by about 40 per cent from 2012 to 2019. With the pipeline the connections to be implemented the imports of LNG will be varying in future.

Is there any hope of reducing expenditure towards imports due to thrust on renewable energy and e-vehicles?

With all the above information in the background, India is seriously planning towards growth of alternative energy sources and the cost of India is seriously planning for encouragement in the field of green hydrogen, solar energy and other alternative energy sources including wind energy, tidal energy etc. The Government of India is also providing incentives for use of e-vehicles to reduce pollution on one hand and to reduce use of fossil fuel-based energy sources on the other hand. With these plans implemented there can be a sharp reduction in imports of petroleum products connected to the energy sector. Even if 50 per cent of energy is diverted towards utilization of green energy the burden of exchequer on imports shall be significant for an all round growth of the economy of the country.

Indirectly it will enhance the chances of the younger generation to shift towards the alternative energy front. Whichever country develops the technology to use its natural resources of green energy like solar, wind, hydrogen sources, those countries are going to be the leaders of the world in the coming decades.