Centre to announce policy for PCPIRs

06-Nov-06

The Centre is likely to announce the policy for the petrochemicals and petroleum investment regions (PCPIRs) next week, providing an impetus to the mega projects proposed at Haldia, Paradip and Mangalore. The guidelines propose a minimum area of 250 sq km close to a port to set up the PCPIR, to be identified by the state governments and then approved by the Centre. Under the new policy, investments in infrastructure relating to roads, railways and airports are to be made by the Centre, with the state governments investing in electricity, water and social infrastructure such as schools and hospitals. It is estimated that no fiscal incentives, such as income-tax exemptions, would be available for these regions, differentiating them from special economic zones (SEZs). The petrochemicals industry in the country is concentrated in the western region, with Reliance Industries the dominant player; downstream oil companies such as Indian Oil are eyeing the eastern region to expand this business.