top of page
Himanshu Upadhyaya

Petroleum, Chemicals and Petrochemicals Investment Regions 




The first ever mention of Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) in Rajya Sabha was observed on 10th March 2006, when the then Minister of State in the Ministry of Chemicals and Fertilizers, Shri B. K. Handique in reply to a question by Shri B. J. Panda referred to a Task Force on Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) that was constituted in the Prime Minister’s office on 20th January 2006.


A similar question was answered by Shri B. K. Handique in Lok Sabha on 6th March 2006 mentioning this task force and the minister had told members of parliament that “this task force will also finalise the number and locations of PCPIRs and a definite timeline has not been fixed at this stage”. On 1st August 2006, while replying to a question by Vijay Jawaharlal Darda, the then Minister of Petroleum and Natural Gas, Shri Dinsha Patel stated the following: 

“Department of Chemicals and Petrochemicals is studying the feasibility for setting up PCPIRs. A task force on PCPIR has been constituted in order to enable quick and coordinated decision making and to provide an appropriate policy framework for development of investment regions of requisite scale and level of facilities, with the involvement of world class developers and investors, in the field of petroleum, chemicals and petrochemicals. The policy is at draft stage”.      


The parliamentary standing committee on Chemicals and Fertilizers (2020-21) note in sixteenth report (March 2021) that the Government of India had formulated PCPIR Policy in April 2007 and the four PCPIRs viz. in the state of Andhra Pradesh, Gujarat, Odisha and Tamil Nadu are being established since then in a cluster approach for promotion of Petroleum, Chemical and Petrochemicals sectors in an integrated and environment friendly manner on a large scale. These four PCPIRs are expected to attract investment in the downstream sector and generate employment.


Throughout the year 2006, several MPs asked in Lok Sabha and Rajya Sabha speculative questions on whether the central government was considering bringing out a policy on Mega Chemical Industrial Estates (MCIE)/ Petroleum, Chemical and Petrochemicals Investment Regions and whether there have been any proposals under active consideration to set up such clusters in Mangalore, Vizag, Haldia, Dahej etc. The PCPIR policy was formally announced by the central government on 4th February 2007.


Replying to a question by Shobhana Bharatiya on the PCPIR policy, the then Minister of State in the Ministry of Chemicals and Fertilizers, Shri B. K. Handique stated:

“The cabinet has recently approved the policy for setting up of Petroleum, Chemicals and Petrochemical Investment Regions (PCPIR) and the same is to be notified. The PCPIR is a specifically delineated investment region having an area of about 250 sq. kms. (with at least 40 percent area earmarked for processing activities). This region would be a combination of production projects, public utilities, logistics, environmental protection, residential areas and administrative services. The purpose is to encourage global scale investment in petroleum, chemical and petrochemical sectors to accelerate economic growth. The Central Government will consider and approve applications from the State Government for establishment of PCPIRs in terms of this policy and also facilitate availability of external physical infrastructure linkages including rail, road, ports and airports. Similarly, the State Government, applying for a PCPIR, will ensure that all physical infrastructure and utility linkages under its jurisdiction are provided. Applications received from interested State Governments for setting up PCPIRs are to be considered in terms of the PCPIR policy.” 


Then replying to a similar question in Lok Sabha on 16th August 2007, the then Minister of State in the Ministry of Chemicals and Fertilizers stated:

“The Cabinet has recently approved the policy for setting up of PCPIRs and the same has been published in the Gazette of India (Extraordinary, Part 1, Section 1 dated 4th April 2007) and is also placed on the website of the Department of Chemicals and Petrochemicals”.


Read and Download the Report Here:



Comments


bottom of page