New Kolkata International Development Signs with Air Liquide for Petrochem Zone Pipeline Project

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Researched by Industrial Info Resources (Sugar Land, Texas)--New Kolkata International Development Pvt. Limited (NKID) has signed a memorandum of understanding with industrial gas company Air Liquide S.A. (EPA:AI) (Paris, France) to create the industrial gas infrastructure for the proposed Petrochemicals, Chemicals and Petroleum Investment Region (PCPIR) on Nayachar Island in West Bengal.

NKID is a special project company created by the Salim Group (Jakarta, Indonesia), Indonesia's largest conglomerate, and Universal Success Enterprises Limited (Kolkata, West Bengal).

The PCPIR concept, originally known as Mega-Chemical Industrial Estates (MCIE), was introduced by the Indian government in 2005, but just a year later the idea was expanded into the PCPIR, which was defined as a specifically defined industrial area, covering about 250 square kilometers, where companies could establish petroleum and chemical manufacturing and processing facilities, both for domestic and export markets.

Nayachar, an island in the Hooghly River at the mouth of the Bay of Bengal in West Bengal, was considered an ideal site for a major chemical hub, as the land belongs to the state government and the island is largely uninhabited. However, the proposal has met with opposition by the state fisheries department, which took over the island in 1988, and environmentalists.

Seven years ago, 13 fishery cooperatives were established on the island by the fisheries department using a loan obtained from the Indian government. The fisheries department is now claiming compensation from the West Bengal Industrial Development Corporation, as it has to repay the loan.

The PCPIR is expected to cover 250 square kilometers, or 62,000 acres, and will comprise some 49,000 acres in the adjacent area of Haldia. Nayachar, which has a total area of 11,900 acres, will provide the balance. Haldia is already home to facilities operated by the Indian Oil Corporation Limited (BSE:530965) (New Delhi), the Mitsubishi Chemical Corporation (TYO:4188) (Tokyo, Japan) and Haldia Petrochemicals Limited (Kolkata, West Bengal).

Nayachar is subject to coastal regulations. All environmental studies are due to be completed by the end of this month and will be submitted to the Pollution Control Board, which will in turn send the results to the environment ministry by the end of the year.

Nayachar Island was selected as the site for the PCPIR after strong protests over the previously suggested site at nearby Nandigram resulted in a violent demonstration in March 2007, in which at least 14 people were killed.

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