HSIIDC approves SPV for Petrochemical Hub

Chandigarh, May 11 (UNI) The Board of Directors of Haryana State Industrial and Infrastructural Development Corporation (HSIIDC) today approved the incorporation of a Special Purpose Vehicle (SPV) for implementing the proposed Petrochemical Hub project in Panipat.

The SPV is to be incorporated jointly by HSIIDC and Indian Oil Corporation Limited (IOCL), with 50:50 shareholding, an HSIIDC spokesman said.

The Board met here today to discuss various ownership models suggested by consultants M/s A T Kearney Limited for implementing the Petrochemical Hub Project.

For speedier implementation of the project, the Board decided that the SPV should be incorporated by IOCL&HSIIDC initially with 50:50 shareholding and subsequently float Global Expression of Interest seeking application from interested parties for participation in the project under various models.

The IOCL&HSIIDC would select the most appropriate model for further implementation, he said.

M/s A T Kearney Limited had undertaken the study for the proposed hub and submitted their report in January 2007.

As per the report, the proposed hub is to be developed over an area of 4000 acres in two phases spread over nine years. The proposed hub is to have world class infrastructure, comparable with the best in the world like the Jurong Park Singapore and Jebel Ali Park Dubai.

The project cost has been estimated at Rs 3730 crore with an employment generation for 38000 persons directly and many more indirectly.

The hub, the spokesman said, was expected to be home to about 470 units which would bring in an investment of about Rs 13,000 crore. It would attract units in the fields of films&packaging, filament yarn, polyester staple fibre, pet chips manufacturing, poly-butadiene rubber, woven sacks and master batches.

Land measuring 941 acres has already been notified under Section 4 for the project and award for about 470 acres of land is likely to be announced soon.

Efforts were also being made to rope in big international players like Jurong as one of the promoters in the project. With the HSIIDC Board having approved the formation of SPV and IOCL also slated to take a decision in the near future, the project was expected to take off in a big way, he added.

UNI