The Odisha Government has once again urged the Centre to enhance grant ceiling for the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR), Paradip to Rs 3,000 crore.
In fact, the proposed PCPIR is not picking up in absence of funding and the Union Government is still undecided over releasing grant, said sources.
Presenting a Memorandum to the NITI Aayog, the State Government has said that grant ceiling of Rs 1,000 crore fixed by the Ministry for PCPIR to meet the provision envisaged is highly inadequate.
The proposed PCPIR needs basic infrastructure such as internal roads, power and water supply and for meetig the expenses, the grant needs to be enhanced to Rs 3,000 crore under PCPIR Policy 2015.
Development Commissioner R Balakrishnan has raised the issue in the recent meeting held with the NITI Aayog, which seems to be supportive of the State’s genuine causes.
The State Government made a proposal for additional amount of Rs 1,147 crore, which was prepared keeping in view the necessary requirement including the basic infrastructure in Paradip for budgetary support from the Government of India. The proposal is still pending with the Ministry of Chemicals and Fertiliser for approval.
Sources in the Union Government said that it has already approved Viability Gap Funding (VGF) support amounting to Rs 716 crore to the Odisha PCPIR at various stages. However, there is no provision to adjust the VGF against grants, said official sources. Officials say that in the meantime, policy change has been effected; so providing all the grants for the PCPIR is unlikely according to the requirement of the Odisha Government.
As part of revision of the existing PCPIR Policy, it has incorporated to make provision of grants/budgetary support to the tune of Rs 1,000 crore for each PCPIR including the existing PCPIRs in the Draft Revision Policy. And as per the existing policy, there is no provision to adjust the VGF against grants.
Similarly, a request of the State Government is pending for consideration of Jajpur Cluster Development limited as implementing Special Purpose Vehicle (SPV) for National Investment Manufacturing Zone (NIMZ) and release of Rs 2.81 crore incurred by the IDCO for preparation of the DPR and Master Plan for the NIZM.
The Government of India has granted final approval for setting up a NIMZ in Kalinganagar in Jajpur district on May 31, 2016 subject to the condition that the Government of Odisha shall form the Special Purpose Vehicle (SPV) by August, 2016 and thereafter, transfer the land to the SPV.
The Government of Odisha has also requested the Department of Industrial Policy and Promotion (DIPP) to release Rs 2.81 crore towards expenditure incurred so far by the IDCO for preparation of DPR and master plan for the project.
The IDCO floated a Special Purpose Vehicle (SPV) as per the DIPP orders and requested to release the grants. However, the DIPP is yet to release the grants though IDCO has intimated the details required for releasing the same, said sources.