Billions Coming AP's Way, Thanks to HPCL Project.

The long-pending Visakhapatnam-Kakinada Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) is likely to take shape with the State-run Hindustan Petroleum Corporation Ltd. (HPCL) relooking its earlier proposal to set up a greenfield refinery-cum-petrochemical complex. The project may encompass investments to the tune of $10-12 billion.

According to senior company officials, HPCL is roping in another public sector major GAIL India and an MoU is likely between both next month. This is the first major industrial investment being announced in Andhra Pradesh after bifurcation of the State.

The proposal was made originally in 2008 but didn't take off due to economic downturn. 'We are in talks with GAIL for a possible tie-up and we expect a formal understanding by next month,' said H Kumar, executive director, Corporate Strategy & Planning, HPCL. Speaking to newsmen recently, he said the company was also in the process of conducting a feasibility study and an environment impact assessment for the proposed 15 mmtpa refinery in PCPIR, expected to be completed in six months.

Besides setting up a new refinery complex, HPCL will also expand capacity at its refinery in Visakhapatnam from the current 8.3 mmtpa to 15 mmtpa. 'This expansion will require investments of about Rs. 5,000-6,000 crore spread over 3 to 4 years,' he said.


THE NEW INDIAN EXPRESS