Indore: In a first of its kind project, about Rs 1 lakh crore will be invested in setting up the nation’s first landlocked oil and chemicals investment hub around an expanded Bina refinery in Madhya Pradesh.

“There had been two meeting between me and Petroleum Minister Dharmendra Pradhan and MP Chief Minister Shivraj Singh Chouhan. At Bina refinery, between Gwalior and Bhopal… Government of India will set up a PCPIR. The PCPIR project cost will be Rs 1 lakh crore. This I would like to announce,” said Chemical and Fertilzer Minister Ananth Kumar.

Speaking at the valedictory function of the global investors summit of Madhya Pradesh government, he said that until now the central government has announced setting up of a PCPIR Dahej in Gujarat, Paradeep in Odisha, Vishakhapatnam-Kakinada in Andhra Pradesh and Cuddalore-Nagapattinam in Tamil Nadu with an investment of Rs 8 lakh crore.

“Around Bina, we will set up the country’s first land- locked petrochemical complex,” Kumar said.

He further said that BPCL has planned to increase the capacity of Bina refinery from 6 MT to 8 MT, and in the coming days up to 15 MT.

“When it will be 15 MT, the investment will be Rs 25,000 crore. And for the Naptha produced for that we will set up the PCPIR at cost of Rs 1 lakh crore,” he said.

A Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) is usually a delineated area of around 250 sq km for setting up manufacturing facilities for domestic and export-led production.

In March 2007, the Cabinet Committee on Economic Affairs had approved the proposal to set up PCPIRs in four states — Gujarat, Andhra Pradesh, Odisha and Tamil Nadu.

Since February 2009, the government has approved setting up of four PCPIRs – Dahej, Paradeep, Vishakhapatnam-Kakinada and Cuddalore-Nagapattinam. Once fully established, they are expected to attract Rs 7,62,894 crore in investment.

Anchor tenant in Gujarat is ONGC promoted OPal, while in Odisha it is IOCL. In Andhra Pradesh and Tamil Nadu, they are HPCL and Nagarjuna Oil Corp respectively.

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