States required to provide ''open access'' for power to PCPIRs

21-Aug-06

A key recommendation in the draft Petroleum, Chemicals and Petrochemical Investment Regions (PCPIR) policy being finalised by the center is that State governments will be required to provide ''open access'' to give investment regions the freedom to source power from anywhere in the country. The state may opt for setting up dedicated power plants for the region, or the power could be outsourced. However, considering the magnitude of PCPIRs being contemplated (each covering an area of around 250 sq km), outsourcing from another state would been a loss of revenue. The draft policy, that has been sent to state governments says that they ''will be responsible for'' power connectivity with the grid and open access to the grid. The PCPIR would house manufacturing facilities for domestic- and export-led production of petroleum, chemicals and petrochemicals. Under the draft policy being finalised, the PCPIR may include one or more special economic zones, industrial parks, free trade and warehousing zones, export oriented units or growth centres. 40% of the designated area (100 sq km) will be the minimum processing area for the PCPIR. Every PCPIR proposal will have to be cleared by the Cabinet Committee on Economic Affairs.