The Hindu Business Line : IOC pact with Bengal Govt

IndianOil on Wednesday entered into an agreement (MoA) with the West Bengal Industrial Development Corporation (WBIDC) to be the anchor investor in the proposed chemicals hub in Haldia, set to come up in an area of 10,000 acres.

To begin with, the company has proposed to set up a 15 million-tonne refinery at an anticipated cost of Rs 15,000 crore in association with MNC oil companies. The company would also explore the possibility of setting up facilities for production of petrochemical products.

A detailed feasibility report in this context would be ready within the next six to eight months. As anchor investor, IOC will also partner the State Government's effort to attract both foreign and domestic investments in the hub. The State Government has already entered into an agreement with the Salim Group of Indonesia as anchor developer of the chemicals hub.

Addressing a joint press conference here, with the IOC Chairman, Mr Sarthak Behuria, the State Chief Minister, Mr Buddhadeb Bhattacharjee, said that a co-ordination committee comprising representatives of both the State Government and IOC would start working on the proposed investment with immediate effect.

Mr Behuria said that IOC has already committed an investment of Rs 2,000 crore for expansion and modernisation of its existing six million tonne refinery at Haldia and is presently commissioning a crude pipeline from Paradip to Haldia.

Deep-sea port

The State Commerce and Industry Minister, Mr Nirupam Sen, who was also present at the meeting, said the State Government was pursuing, with the Centre, to set up a high-sea port (with over 15 metres draft) in the region. Since Haldia and Kolkata ports suffer from lack of draft, the new sea port could hold a pivotal position in making the chemicals hub and IOC investment into a reality.

"The Chief Minister discussed the issues related to the sea port with the Prime Minister, Dr Manmohan Singh, on Tuesday. The Prime Minister has assured that a committee comprising State and Central representatives would appoint a consultant soon to explore the feasibility of the project," Mr Sen said.

It may be mentioned that responding to a tender floated by the Union Shipping Ministry, nine consultancy agencies have already expressed interest to prepare a feasibility report.

PCPIR

The chemical hub would be a part of the 280 square kilometre petroleum, chemicals and petrochemicals industrial region (PCPIR) proposed to be set up in the State. The PCPIR would include the entire existing establishments and industries of Haldia and its adjoining areas in East Midnapore district.

According to Dr Sabyasachi Sen, Principal Secretary of Commerce and Industry Department, apart from the existing industries and the proposed chemicals hub, the PCPIR would include a 12,500-acre multi-product SEZ also to be developed by Salim Group and an SEZ for pharmaceuticals industry.

A master plan ensuring use of at least 40 per cent of the land for industrial purposes for the entire PCPIR would be prepared soon and placed for necessary approval from the Centre.

More Stories on : New Projects | Chemicals | Petroleum | West Bengal

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page