Govt to boost investments in petrochemicals

New Delhi, May 8 (UNI) The government today set up a new policy to boost investments in the petrochemicals sector that would attract an investment of Rs 40,000 crore from a single region from across the country.

Called the Petroleum, Chemical and Petrochemical Investment Regions (PCPIR) policy, the centre will invest Rs 10,000 to 15,000 crore for upgrading the infrastructure in the PCPIRs, Chemicals, Fertilizers and Steel Minister Ram Vilas Paswan said after the launch.

The infrastructure upgrading will include external linkages to these regions, including rail, road (NH), ports, airports and telecom, in a timebound manner.

The policy will help in reaping the benefits of integrated petroleum, chemical and petroluem complexes. These regions will provide excellent infrastructure for the sector to be globally competitive, Mr Paswan said.

The PCPIR will be a delineated investment region with an area of 250 square kilometres and will be a combination of production units, public utilities, logistics, environmental protection mechanisms, residential areas and administrative services.

The minimum processing area for the PCPIR will be 40 per cent of the total designated area (100 square kilometres).

Mr Paswan said the sector contributes to over 20 per cent of the total chemical sectors output.

The per capita consumption of plastic and synthetic fibre in the country is lower than the world average. By boosting consumption this sector will see rapid growth in coming years, he added.

When asked whether these regions would enjoy any tax benefits, Mr Paswan said it will not come under under the tax benefit zone.

However, the PCPIR may include one or more Special Economic Zones (SEZ), industrial parks, free trade and warehousing zones, export oriented units (EoUs) or growth centres and all the benefits available under the relevant legislation or policy will continue to remain available to the said zones, Mr Paswan added.

Regarding aquisition of land for the PCPIR, Mr Paswan said ''It's between the private developers and the land owners to deal with the issue.'' UNI PM DKS HS1916