Seminar on
"Petroleum, Chemicals & Petrochemicals Investment
Region" held in City
Hyderabad|India|May '2011: The seminar on
Petroleum, Chemicals and Petrochemicals Investment
Region (PCPIR) in Andhra Pradesh was organized at
Hote Taj Deccan, Hyderabad organized by ASSOCHAM
in association with FAPCCI, the Union Ministry of
Chemicals and Fertilizers along with the
Government of Andhra Pradesh.
According to a study released by The Associated
Chambers of Commerce and Industry of India (ASSOCHAM),
the Indian petrochemical capacity growth rate
which has been three to four per cent over the
past five years is expected to increase four
times and range between 12 to 15 per cent in the
next five to seven years besides generating
millions of new jobs.
In recent years, the global chemical and
petrochemical industries have moved eastward
towards the Middle East and Asia with major hubs
being set up in these regions. This simultaneously
represents a tremendous window of opportunity for
Indian chemical and petrochemical industries, said
the study titled Mark Up for Growth: PCPIR in
Andhra Pradesh.
India can take advantage of this shift and attract
large funds from investors keen to invest in the
region near mega demand centres India and China.
The size of Indian chemical industry is about 40
billion dollars (or three per cent of the GDP) and
employs one million people directly and
indirectly. It currently has investments of 60
billion dollars.
The government has so far notified four PCPIRs
Dahej in Gujarat, Haldia in West Bengal, Paradeep
in Orissa and Vishakhapatnam in Andhra Pradesh.
The proposal of Tamil Nadu government for a PCPIR
at Cuddalore has been approved the cabinet
secretariat and forwarded to the Cabinet Committee
on Economic Affairs. Another project at Mangalore
in Karnataka is at planning stage.
The notified area of PCPIR in Andhra Pradesh is
603 square km. There are five special economic
zones (SEZs) including two multi-product SEZs, two
pharma SEZs and one apparel SEZ.
Among major players who have expressed interest in
setting up units here are: Hindustan Petroleum, LG
Polymers, Coromandel Fertilisers, Andhra
Petrochemicals, Rain Commodities, Pharma City with
Pharma SEZ, Hetero Pharma SEZ, Godavari
Fertilisers and Chemicals, and Nagarjuna
Fertilisers and Chemicals.
With the setting up of Andhra Pradesh PCPIR, the
states objectives of attaining growth,
development and employment generation are aligned
with the national objective of creating a world
class infrastructure such as widening of national
and state highways, rail links, upgradation of
airports and seaports, improving power and water
supply.
Strategic location and robust infrastructure back
up the supports for domestic and global players to
invest in setting up units in Andhra Pradesh PCPIR,
said the ASSOCHAM study done in collaboration with
PricewaterhouseCoopers (PwC).
A PCPIR consists of a processing and a
non-processing area. The processing area occupies
a minimum of 40 per cent of total area that is
about 100 square km and includes manufacturing
facilities along with logistics and other services
with required infrastructure.
The non-processing area will hence occupy a
maximum of 60 per cent of the total area about
150 square km and include residential, commercial
and other social and institutional infrastructure.
However, the Indian industry faces major
competition from hubs in China, Singapore and the
Middle East to grab a share of the investment pie.
India needs to maintain certain levels of
competitiveness and cost effectiveness to tackle
this competition.
Thus PCPIRs with their integrated and resource
efficient approach are vital for the Indian
chemicals and petrochemicals industry, said the
ASSOCHAM study.
May.2011
