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Petrochemicals Investment Region to be set up in Tamil Nadu

July 06
22:18 2012

NEW DELHI: The Cabinet has approved the setting up of the country’s fifth Petroleum Chemicals and Petrochemicals Investment Region (PCPIR) in Tamil Nadu, hoping to attract Rs 92,160 crore investment.
The PCPIR would come up in the Cuddalore and Nagapattinam districts of the southern state on over 256.83 sq km, Home Minister P Chidambaram said in a media briefing on the decision of Cabinet Committee of Economic Affairs.
“A total investment of about Rs 92,160 crore is expected in the TNPCPIR which includes committed investment of Rs 22,160 crore,” Chidambaram said.
Nagarjuna Oil Corporation (NOCL) and state-owned Chennai Petroleum Corporation (CPCL) would be the lead anchor tenants in the proposed PCPIR.
Chidambaram said NOCL is setting up a six million tonnes per annum (mtpa) refinery at Cuddalore with Rs 9,660 crore investment and CPCL is planning a 15 mtpa capacity refinery- cum-petrochemical complex with Rs 40,000 crore outlay.
The TNPCPIR plans to invest Rs 13,354 crore on building infrastructure including roads, rail, air links, ports and water supply.
As per the policy, infrastructure would be created through public-private-partnership to the extent possible and the Centre would provide the necessary assistance through the viability gap funding (VGF).
“Accordingly, government of Tamil Nadu has sought support from the Government of India involving a commitment Rs 1,143 crore on account of VGF funding for two road-related projects, CETP and desalination plants and Rs 1,500 crore of direct budgetary support for a rail project,” Chidambaram said.
Of the total area, 104 sq km would be reserved for crude processing and the remaining is for residential, commercial and other social and institutional infrastructure, he said.
NOCL has already started project works for its refinery and set the target for completion by September 2013.
“NOCL has also finalized in-house configuration mapping for expansion of the refinery by nine mtpa and bringing the total crude processing capacity to 15 mtpa by 2015-16,” he said, adding that the company also plans to set up a Xylene production facility, purified terephthalic acid plant and a propylene unit.
CPCL, the second anchor tenant in TNPCPIR, would have a grass-root refinery along with ethylene cracker, downstream derivative units as well as aromatic complex.
“The project is designed for production of 1.2 mtpa of ethylene. It envisages investment of Rs 40,000 crore beyond the period of 2015,” Chidambaram said. -PTI



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