The Union Cabinet has cleared proposals to establish three petrochemicals hubs at Dahej in Gujarat, Haldia in West Bengal and Vishakhapatnam in Andhra Pradesh.

The government has been evaluating six sites for development as Petroleum, Chemicals and Petrochemical Investment Regions (PCPIRs) after the policy to build such regions was introduced in May 2007.

The proposed PCPIR would be a delineated investment region with an area of about 250 square kilometres earmarked for manufacturing facilities producing petroleum, chemical and petrochemical products - either for domestic consumption or for exports.

Each PCPIR would have a refinery or a petrochemical feedstock company as the anchor tenant, and would attract investments worth about Rs 40,000-50,000 crore.

The government is expecting an investment of $20-25 billion (Rs 100,000-125,000 crore) in all through developing the three PCPIRs.

The PCPIRs are being promoted to attract major domestic and foreign investment to make the country an important hub for both domestic and international markets for petroleum, chemical and petrochemical products.

The PCPIR would be a combination of production units, public utilities, logistics, environmental protection mechanisms, residential areas and administrative services.

It would have a processing area, where the manufacturing facilities, along with associated logistics and other services, and required infrastructure will be located. It will also have a non-processing area to include residential, commercial and other social and institutional infrastructure.

The central government will ensure physical infrastructure including rail, national highways, ports, airports and telecommunication facilities in a time-bound manner with investment of around Rs 10,000 crore to Rs 15,000 crore per PCPIR.

The state governments will be responsible for providing infrastructure facilities like power, water, sewerage and health, safety and environmental concerns.

In October 2007, state-run refiner Hindustan Petroleum Corp Ltd, gas supplier GAIL India, oil explorer Oil India, French energy major Total SA and L N Mittal-controlled Mittal Energy Investments had signed a memorandum of understanding to build a 14-15 million tonne per annum (mtpa)refinery-cum-petrochemical project at a proposed PCPIR near Visakhapatnam with an estimated investment of $10 billion (approx Rs 50,000 crore).

Shaleen Agrawal DNA