With the Union Government keeping mum over providing grant of Rs 3,000 crore for development of a Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) at Paradip, the State Government has strongly advocated for sanctioning of funds to develop infrastructure for such a kind of industrial region.
As planned by the Government, the PCPIR at Paradip was to come up in 71,000 acres in Public Private Partnership (PPP) mode with provision of Viability Gap Funding (VGF).
The Union Government has a provision of Rs 1,000 crore for providing VGF, which is very low looking at the huge industrial region to come up in 284 sqkm area.
So the State Government had requested the Ministry of Chemicals and Fertilizers (MoCF) to increase the grant from Rs 1, 000 crore to Rs 3,000 crore.
The MoCF has already received the proposal of the Odisha Government in this regard; however no decision has been taken by the Centre, said sources.
Now market sentiment is down and looking at the subdued environment among the investors, the State Government has urged the MoCF for grant instead of VGF, said a senior official in Department of Industries.
PCPIR was to be set up in Jagatsinghpur and Kendrapada districts, which was approved by the Centre in December, 2010.
A Memorandum of Agreement was signed between the Centre and State Governments for establishment of the PCPIR on November 3, 2011.
The first phase of the PCPIR project had been targeted to be completed by 2020, while the implementation of the second phase would be between 2020 and 2030.
However due to indecision of MoCF, the proposed PCPIR has remained a non-starter. Unless PCPIR comes up, the Indian Oil Refinery will not be able to generate huge employment opportunity in this industrial region, said the official.
Similarly, the Union Government has been approached by the Odisha Government to promote an industrial corridor in the eastern region to promote investment and industrialisation. In fact, the Government of India has taken steps for development of industrial corridors in the country. Amritsar-Delhi-Kolkata and Chennai-Vishakhapatnam Industrial Corridors are coming up in a big way.
Both the corridors under development are outside Odisha’s boundary.
looking at development of overall industrial environment in the State, the Odisha Government has taken various pro-active steps to attract investors under “Make In India” campaign.
looking at the huge possibilities of investment, the Government of India has been urged to consider in setting up of such an industrial corridor connecting Kolkata-Bhubaneswar-Vishakhapatnam in the eastern region, said the official.