19 March 2012 02:23 [Source: ICIS news]
GURGAON, India (ICIS)--The Indian government may revise the criteria for setting up petroleum, chemical and petrochemical investment regions (PCPIRs), senior government officials said late on Friday.
“The government was earlier looking at only coastal regions for setting up PCPIRs, but that framework is now seen to be too restrictive,” one of the officials said on the sidelines of the one-day petrochemical conclave organised by Indian Oil.
The government may now extend the criteria for PCPIRs to include existing inland petrochemical complexes, such as Indian Oil’s refinery and petrochemicals complex at Panipat in Haryana state.
The new criteria may be successful in attracting upstream and downstream investment, a second official said.
The PCPIR policy was initiated to promote investment in the petrochemicals sector and make the country an important hub for domestic and international trade by providing a transparent and investment-friendly regime and good infrastructure.
Coastal states, such as Gujarat, Orissa, Andhra Pradesh, West Bengal and Tamil Nadu, have been in a favoured position for setting up PCPIRs because of their accessibility to ports.
“However, the progress made by the PCPIR policy in attracting investments into new petrochemical hubs has been rather slow. So the government is now considering the possibility of extending the same facility to existing petrochemical hubs which already have good connectivity and infrastructure,” the second official said.
Additional reporting by Malini Hariharan
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