India centre-state govt's petchem complex may attract $71bn

01 October 2009 18:34  [Source: ICIS news]

NEW DELHI (ICIS news)--India's National and local state government plans to set up a mega petrochemical hub in Andhra Pradesh, which has the potential to attract $71bn of investment, an official statement said on Thursday.

Representatives of the national government and the state authority signed a memorandum of understanding to set up the Petroleum, Chemicals and Petrochemicals Investment Region hub in the Vishakhapatnam (Vizag)-Kakinada-Rajahmundry corridor, with potential of attracting Indian Rupees (Rs)3,430bn ($71.4bn) of investment, the official release said.

The Andhra government had identified two anchor tenants for the development – the Hindustan Petroleum Corporation Limited (HPCL) and a consortium led by Hyderabad-based infrastructure group GMR, it added.

The statement said GMR consortium would set up a 15m tones per year refinery and a 450,000 tonnes per year polypropylene unit, which would cost Rs310bn.

This 604²km hub would be spread over twin districts of Vishakhapatnam and East Godavari.

The Indian government announced in February it would set up three such hubs in India but this is the first MOU to be signed between the national government and the regional authority.

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($1 = Rs48.10)

By: Naresh Minocha
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