$20 Billion for Development of India’s Regional Petrochemical Hubs

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Researched by Industrial Info Resources (Sugar Land, Texas). The Indian government has launched a new Integrated Chemicals and Petrochemical Regions (PCPIR) policy to boost the manufacturing sector, increase exports and make the sector globally competitive. The policy is aimed to give a push to industrialization in regions by setting up down-stream units which will lead to the development of socio-economic infrastructure in the areas and around the regions.

An investment of $8.5-9.7 billion into each PCPIR is expected and will be directed to the development of projects in oil refining, fertilizers, chemicals, crackers and pharmaceuticals. The integrated regions, in addition to industrial development aims, will help in generating direct and indirect employment and will make India an important hub for both the domestic and international markets.

The central government will ensure physical infrastructure including rail, national highways, ports, airports and telecommunication facilities on a planned schedule with investments of $2.4–3.6 billion for each PCPIR. State governments will be responsible for the provision of infrastructure facilities like power, water, sewerage and health, safety and environmental concerns. A total investment of $20 billion is anticipated by the government. The first PCPIR will probably be initiated by the end of the year.

Specific investment regions will be delineated with an area of about 250 square kilometers for manufacturing facilities for domestic and export led production in petroleum, chemicals and petrochemicals along with associated services and infrastructure. The minimum processing area for a PCPIR will be 40% of the total notified area and each processing area can be standalone or contiguous to another processing area. They may include one or more special economic zones, industrial parks, free trade and warehousing zones, export oriented units and growth centers notified under the relevant central government or state legislation policy.

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