'Only pvt investment can ensure 4 petchem centres development'


PTI | Mumbai | Updated: 12-11-2019 20:06 IST | Created: 12-11-2019 20:06 IST
'Only pvt investment can ensure 4 petchem centres development'
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To reach the full potential of the proposed four petroleum, chemicals and petrochemicals investment regions (PCPIRs), the private sector has to take an active role and pump in money into them, says a report. The government has identified four regions--Dahej in Gujarat, Vishakhapatnam in Andhra, Paradip in Odisha and Cuddalore in Tamil Nadu to set up PCPIRs.

"Success of PCPIRs depends on proactive roles by their managements in conceptualisation and phasing the development of these clusters and also how much the industry will invest in these projects," says a report by government and the industry lobby Ficci. The government can be a catalyst providing support in terms of fast track clearances, favourable duty regime and an overall business friendly environment, time bound exemptions, subsidies and incentives.

The PCPIR aims at developing global scale industrial corridors in the petroleum, chemical and petrochemical sector in an integrated and environmental-friendly manner. The policy, formed in 2007, is also targeted at establishing high-class infrastructure, promoting an environment conducive for setting up new business units, attracting investments and boosting production, exports and employment generation.

However, only Dahej could take off so far as due to many issues regarding infrastructure and project financing, investment into the Vizag, Paradip and Cuddalore have been relatively low. Calling for faster development of the identified regions, the report said this is needed as the demand is growing very fast.

The report sees traditional sectors like commercial vehicles and railways will continue to drive demand as it feels that electrification of vehicles will take longer and more than 50 percent of the vehicular population will continue to be fuelled by fossil oil till about 2040..

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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