Karnataka State Cabinet has given its consent to apply to the Union Government for establishing a Petroleum Chemical Petrochemical Investment Region (PCPIR). The Rs 1,52,000 - 2,00,000 crore project is subject to Union Government approval.
KSIIDC, which had been designated as the nodal agency to appoint consultants for the project, had appointed ILFS/IDC and LNT Ranboll Consultant Engineering Limited as project development advisors. A preliminary environmental impact assessment study had been carried out to assess the environmental impact due to grassroots development and types and scale of industries proposed in the project. A detailed project report would be worked out after the Centre gives its in-principle approval.
The three phases in the development of the project would be:
First phase (2008-14)
Acquisition of 2,23,462 acre or 94.95 sq km land, including processing and non-processing areas. o adverse impact was anticipated due to land acquisition as most of the land identified was wasteland or lands with shrub vegetation
Second phase (2014-20) and third phase (2021-2026):
Implementation of the project, which is estimated to be adequately viable considering the locational strength of Mangalore, availability of anchor tenants ONGC/MRPL and additional demand of downstream industries as replicated through various studies conducted by independent consultants.