PCPIR to get a fresh lease of life

Visakhapatnam: THE jinxed Visakhapatnam-Kakinada Petroleum, Chemical and Petrochemicals Region (PCPIR) project appears to be set for getting a fresh lease of life with Centre forming a working group to give a push to the proposed petrochemical complex at the Kakinada Special Economic Zone.

The Ministry of Petroleum and Natural Gas has set up the group under the chairmanship of Joint Secretary (Refineries) to expedite the establishment of a petrochemical complex following talks held by AP Chief Minister YS Jagan Mohan Reddy and Industries Minister Mekapati Goutham Reddy with Union Minister for Petroleum, Chemicals and Steel Dharmendra Pradhan during their visit to New Delhi.

The project hit a roadblock with the Centre insisting the State pay viability gap funding of Rs 975 crore over a period of 15 years. The State Government insisted that as the Centre had promised the project as part of AP Reorganisation Act, 2014, it should not burden much on the newly carved out State. AP also contended that with change in tax structure like reduction in corporate tax, viability gap funding may not be required. Responding to the pleas of AP, Pradhan had promised to evolve a joint working mechanism during last month. The one million tonne cracker complex proposed by HPCL and GAIL had envisaged an investment of Rs 32,900 crore. According to the Ministry of Petroleum and Natural Gas, Engineers India Ltd (EIL) and SBI Caps will rework on financials as part of focus to give a fillip to strategic projects.

In a tweet on Monday, Industries Minister Mekapati Goutham Reddy said PCPIR area has proximity to three major ports in AP (Visakhapatnam, Gangavaram and Kakinada). It will facilitate feedstock sourcing and enhance connectivity to markets.

The PCPIR project, conceived about 15 years ago with an estimated investment of Rs 3.43 lakh crore did not make much progress due to protests over Costa Corridor and later resolutions adopted at grama sabhas in protest against establishment of hazardous units under the alibi of providing jobs to the locals.

Then Chief Minister N Chandrababu Naidu also cancelled the public hearing over the master plan for the PCPIR saying they would not go against public opinion.