PCPIR issues referred to Group of Ministers

24-Nov-06

The proposal to create petrochemical and petroleum investment regions (PCPIRs) has been referred by the Cabinet to a group of ministers (GoM) to resolve contentious issues including availability of land. Objections have come in from various quarters: Several land-locked states have opposed the PCPIRs as it will benefit only coastal states with port connectivity that is essential for the business of petrochemicals. Objections have also been raised within the government to check the use of agricultural land for setting up PCPIRs over huge areas of 250 sq km or more. This idea has already been floated to foreign players and multinationals like Exxon Mobil and BASF. If the matter gets stuck, it may prove to be an embarrassment to the government as these multinationals are closely following the policy. As per initial estimates, an investment of about US$150 billion is required to actually build the proposed petroleum and petrochemical investment regions (PPCIRs) in various ports of India. Investment to the tune of US$40 billion will be required for modernisation of ports so that they can handle cargo on a large scale. Another US$30 billion will be needed to provide connectivity via roads to these PPCIRs.