The Hindu Business Line : A tale of 2 projects off Kakinada coast

The Chief Minister of Andhra Pradesh, Dr Y.S Rajasekhara Reddy, seems to be extremely keen on establishing an oil refinery (and a port-based special economic zone) here, in spite of the reservations and second thoughts of the ONGC, the main promoter, on the economic viability of the project.

It is gathered that Dr Reddy is doing his best to persuade the ONGC to go ahead with the project, as already 4,000 acres of land has been acquired for it, and it all seems to depend on his persuasive skills and those of Mr M. Pallam Raju, the Union Minister of State for Defence, who represents the Kakinada Lok Sabha constituency. Mr Pallam Raju, too, has gone on record saying that the refinery, and the SEZ, will come through.

Refinery Project

Mr M. Gopalakrishna, the local MLA belonging to the ruling Congress party, presently finds himself in an unenviable position, as he committed himself to the project and campaigned aggressively for land acquisition for it in spite of stiff opposition from farmers in the initial phases.

He incurred the wrath of farmers and still stood his ground. Now, after the land acquisition process is almost half way through, the future of the project is uncertain and he is understandably agitated.

The refinery is the second major project proposed at Kakinada, which got into trouble. Earlier, during the Telugu Desam regime, an LNG terminal was proposed here and Mr Chandrababu Naidu, the then Chief Minister, used to assert often that it would become a reality. But the political situation changed and the Congress Government, which succeeded him, did not pursue the project.

It remains to be seen whether the refinery project, like the LNG terminal, will be a stillborn baby or whether Dr Y.S Rajasekhara Reddy will succeed in his efforts to breathe life into it.