Government to limit number of PCPIRs to less than twelve

18-Jan-07

The Union Government has decided to limit the number of Petroleum, Chemicals and Petrochemical Investment Regions (PCPIRs) to less than twelve, as per a suggestion made by the Finance Minister, so that these regions do not evoke controversy as in the case of Special Economic Zones (SEZs) especially on land acquisition related issues. PCPIRs are regions that would provide the basic infrastructure facilities to broad-base the hydrocarbon and related downstream industry with investments from abroad. The green field projects would be on global scale mostly meant for export markets. As per the current status, one investment region each in West Bengal, Gujarat, Karnataka, Tamil Nadu and Andhra Pradesh are sought to be set up. These are the five states that have come forward with firmed up proposals up to set up PCPIRs. The centre proposes to amend the criterion to set up a PCPIR. Currently, a state can propose setting up an investment region for hydro-carbon sector only around a major port with infrastructure facilities. But, the criterion may be changed to allow states "with adequate port connectivity" to set up these regions that involve massive foreign and domestic investment. The changed norms would benefit states like Uttar Pradesh and Bihar that have large tracts of land but without a port. Land use norms for these investment regions were also finalised. While 60% would be exclusively for manufacturing and processing of hydro-carbon products, the rest 40% may be set aside for the township and common amenities.