The government of Andhra Pradesh has decided to give a push to the Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) as several units will come up between Visakhapatnam and Kakinada.
The government is finalising timeline for implementation of the multi-product investment region. A decision has been taken to scout for investors as the Centre intends to pump in an investment of Rs two lakh crore in various projects between Visakhapatnam and Kakinada. One of the major investments now in advanced stage of implementation is expansion of the Hindustan Petroleum Corporation (HPCL) Visakh Refinery.
The modernisation project will increase production capacity from 8.33 million tonne to 15 million tonne with an investment of Rs 20,928 crore by July 2020.
PCPIR received a major setback after HPCL-GAIL-TOTAL refinery complex investment plan had been shelved at Atuchutapuram following which the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) cancelled the allotment of 1,500 acre near the Andhra Pradesh Special Economic Zone (APSEZ).
The MoU signed with Watya India Consortium of Kuwait for establishing a USD two billion refinery at Parawada and an LPG terminal at Gangavaram Port by Petronet LNG with an investment of Rs 9,000 crore also did not take off.
As per the original proposal, PCPIR was supposed to come up in an area of 603.58 sq km with an estimated investment of Rs 3.43 lakh crore to generate direct and indirect jobs to 12 lakh over a period of five to seven years. A speedy implementation of Visakhapatnam-Chennai Industrial Corridor will give a fillip to investments in PCPIR.
