The West Bengal government on Friday announced the scrapping of a proposed PCPIR at Nayachar island in the East Midnapore district of the State. The project was scrapped on environmental grounds and an eco tourism project is likely to come up in its place.

“The government will not allow a chemical hub in the State because of threat of air and land pollution and also since it threatens the livelihood of fishermen,” the Industry Minister, Mr Partha Chatterjee, told the State Assembly.

He added that the island would be developed for eco-tourism and the interests of fishermen inhabiting in the island would be protected.

The scrapping of the petroleum, chemicals and petrochemicals investment region (PCPIR) – spread across 250 sq km of land that include Nayachar island and Haldia – comes close on the heels of the State government's decision to scrap the proposed nuclear power plant at Haripur in East Midnapore.

Both projects had been proposed during tenure of the previous Left Front government and had been opposed by the Trinamool Congress. Environmental issues and possible loss of livelihood drew the ire of local people.

The island also comes under the coastal regulation zone restrictions.

According to initial plans, the chemical hub was planned as a joint venture of the West Bengal Industrial Development Corporation (WBIDC) and New Kolkata International Development (NKID). NKID is a joint venture between the Indonesian Salim Group and Mr. Prasoon Mukherjee-promoted Universal Success Eneterprises (USE).

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