28 August 2013 07:43 [Source: ICIS news]
KOLKATA (ICIS)--The government of Orissa is scouting for two more anchor investors for the petrochemical investment region coming up in the eastern Indian province, a government official said on Wednesday.
The prospective investments from additional anchor investors and downstream project profile would be in line with the feasibility report and product profile report mandated to Jurong Consultants Pte Limited, Singapore, the official said.
Additional anchor investments for the upcoming Petroleum, Chemicals, Petrochemical Investment Region (PCPIR) at Paradip in eastern Indian coastal province of Orissa had become necessary since Indian Oil Corporation (IOC) was committed to piecemeal petrochemicals projects, the official added.
IOC had committed investments in construction of a polypropylene plant by 2017 and another polypropylene plant by 2018.
The largest Indian oil refiner-marketer was nearing completion of construction of a 15m tonne/year grass-root refinery entailing an investment of $5bn (€3.75bn) at Paradip PCPIR and a principal anchor investment.
However, the official said the provincial government favored gas and naphtha-based integrated petrochemical cracker plants with downstream units, which could support a host of value-added plastic processors at the Paradip Plastics Park Limited, proposed to be constructed by the provincial government.
The mandate to Jurong Consultants included guidelines from the government to draw up the feasibility and product profile reports based on availability of surplus naphtha from IOC refinery, which is expected to come on stream later this year.
Other factor to consider was the availability of liquefied natural gas (LNG) from IOC’s planned $730m LNG terminal in collaboration with Dhamra Port Limited, which operated the Dhamra port in close proximity, the official added.
Last year, IOC had initiated talks with overseas investors like Qatar Petroleum and Qatar Petrochemicals Limited in an effort to woo them to the PCPIR.
But the lack of response to IOC's wooing prompted the Orissa government to intervene in seeking multiple anchors for the region and appointment of Jurong Consultants, a section of officials in industries department of Orissa pointed out.
The Paradip PCPIR, with IOC as the first major investor has been conceived across 284 sq kms in the hinterland of Pradip Port with the Indian government projecting a total investments of $40bn on upstream and downstream units in the region.
($1 = €0.75)
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