Gujarat shows Global Dreams to Petro Majors.

Ahmedabad The state government has fixed an investment target of $20 billion by 2015 and double it in the next five years with a view to putting petroleum, chemical and petrochemical investment region (PCPIR) on a fast track in Gujarat, which has already emerged as India’s petrochemical hub, accounting for 62 per cent of the country’s total petrochemical production.

Speaking at a conference on “Gujarat: the Petrochemical Hub” organised by the Associated Chambers of Commerce and Industry of India (Assocham) here on Saturday, principal secretary (industries and mines) Maheshwar Sahu said all preliminary work had been completed in the state’s PCPIR spread over 453 sq km at Dahej in Bharuch district.

He said a total of $632 million would be invested in infrastructure development in the PCPIR and another $ 13.7 billion would be invested for other developmental activities. He said the state government was also giving priority to issues pertaining to labour laws to create an investor-friendly atmosphere to enable the industry compete globally.

Sahu said in the last few years, the state has emerged as a virtual petrochemical hub of the country with the state government playing a pro-active role and trying to compete with developed nations. Stating that Reliance, Gujarat Alkalies and Chemicals Limited, Gujarat State Petronet Limited, Welspun and Indofil were among the existing companies in PCPIR, Sahu said the anchor tenant in the Dahej PCPIR was ONGC Petro-additions Limited(OPaL), a joint venture between ONGC Limited and Gujarat State Petroleum Corporation (GSPC), which have invested $2.6 billion in a world-class 1.1-MMPTA multi-feed cracker plant. The construction has already commenced.

Stating that the two major elements in the growth of petrochemical industry in India were the decision to allow 100 percent foreign direct investment in this sector and the establishment special economic zones (SEZ) and PCPIRs, Assocham secretary general D S Rawat said the refining capacity in India was expected to rise from 135 MMPTA in 2006-07 to 210-225 MMPTA in 2011-12. He said the increased availability of naphtha had prompted petrochemical companies into announcing setting up of naphtha cracker plants.

Rawat said the petrochemical capacity growth rate, which was 3-4 per cent in the last five years, was expected to increase four times to 12-15 per cent over the next five to seven years. This growth in downstream production, he said, would be supported by growth in domestic consumption as well.

Rawat said the growth in key end-use sector for chemicals like textiles (fibres), auto (plastic parts, accessories) and personal lifestyle products were likely to further boost the domestic demand for petrochemicals. In the next five to six years, he said, India was expected to become a regional petrochemical hub.

Assocham managing committee member Rajiv Vastupal said domestic industries were trying to tie up with international players to tap into opportunities in the manufacturing of speciality chemicals.

Source : expressindia.com