The Hindu Business Line : AP, Centre in pact for petrochem hub

Hyderabad, Oct. 1 The Andhra Pradesh Government and the Centre have signed up to pave way for setting up of a petrochemical hub on the Visakhapatnam-Kakinada corridor.

The memorandum of understanding (MoU) was signed in New Delhi on Thursday by Mr B. Sam Bob, Principal Secretary, Industries, on behalf of the Andhra Pradesh Government with Ms Neel Kamal Darbari, Joint Secretary, Petrochemicals, in the presence of Mr Bijoy Chatterjee, Secretary, Petrochemicals, and Mr B.P. Acharya, CMD, Andhra Pradesh Industrial Infrastructure Corporation (APIIC).

The Chief Minister, Mr K. Rosaiah, reacting to the MoU for setting up of the Andhra Pradesh Petroleum, Chemicals & Petrochemical Investment Region (APPCPIR), described it as a golden letter day in the history of the State and a big leap for industrialisation.

Dream project

He said the development of PCPIR was one of the dream projects of the former Chief Minister, Y.S. Rajasekhara Reddy.

The State had announced a move to set up a petrochemical investment region in May 2007.

Andhra Pradesh sought approval and secured Central Government nod in March 2009.

These PCPIRs were sanctioned for Gujarat and West Bengal too. The total infrastructure cost is estimated at Rs 19,031 crore.

Infrastructure cost

Of this, the Centre’s assistance would be Rs 6,334 crore and the State Government’s contribution Rs 2,132 crore for common infrastructure and the rest would be through public, private participatory mode.

According to estimates, the State Government has projected an investment of over Rs 3 lakh crore over a period of 7-10 years. The region is expected to provide employment to 12 lakh people; of this, about 5.25 lakh would be direct and 6.75 lakh indirect.

Highway upgradation

Under this project, National Highway No. 5 between Visakhapatnam-Rajahmundry would be upgraded to six lanes. National Highway 214 between Kathipudi and Kakinada enhanced to four lanes in the first phase. Similarly, 4-lane important link roads between Anakapally (NH 5) to Achutapuram junction and Yelamanchali (NH 5) to Achutapuram Junction would be upgraded under Central Road Fund (CRF) scheme of the Government of India. Besides, port connectivity road would be developed from Kakinada to Annavaram.

Apart from upgrading the infrastructure in Visakhapatnam- Kakinada corridor with the Union Government support, the State expects to attract global investments leading to employment generation in the State.

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