The revised policy for Petroleum, Chemicals & Petrochemicals Investment Regions (PCPIRs), which is likely to be ready by the end of 2015-16, would reduce the land requirement by a fifth and can allow multiple anchor tenant investors.
Avinash Joshi, Principal Secretary, Petrochemicals Division, Union Ministry of Chemicals and Fertilizers, told BusinessLine on Friday that, “Land requirement for a PCPIR could be pared down to 50 square kilometres from 250 kilometres prescribed in the original policy of 2007”. Joshi was here to attend an event organised by Indian Chamber of Commerce.
He also said that the revised policy was likely to be ready in the next six months. The Ministry is also inclined to accept the concept of multiple investors or tenant at the seaport based PCPIR.
“The broad contour of the revisions would involve relaxation of land requirement, provisions regarding downstream units and anchor tenant (refiner/cracker project investor), incentives, direct support in preparatory stage including reading of a master plan and single window at the Ministry level,” he said.
In view of functional requirements that arose during the development of PCPIRs in Gujarat and Paradeep, it was felt that more than one investor was needed to do justice to such gigantic projects. He indicated that the revised policy would permit plastic parks outside a PCPIR (for small downstream units) at a nearby area.
New applicants Joshi said Kerala, Karnataka and Maharashtra have applied for one PCPIR each in their State. “They would have to undertake feasibility studies for their proposed PCPIRs,” he said.
The revised policy may help West Bengal to make a fresh proposal as the land requirement is likely to be substantially reduced, he felt.
The PCPIR policy was framed by the Centre to promote investments in the petrochemicals sector and create port based hubs for both domestic and international markets.
External infrastructure linkages to the PCPIRs including rail, roads, ports, airport and telecom are enabled by the policy. It also made provision for the Centre to provide the necessary viability gap funding.
However, during implementation several issues cropped up delaying implementation of the projects. Joshi said the revised policy would address all these issues.