Following is an excerpt from a report in Financial Express.

The state-owned Industrial Infrastructrue Development Corporation (IDCO) chairman-cum-managing director, Priyabrata Patnaik, told reporters that the Union secretary urged the state government to provide land, water linkage and power supply besides other required infrastructrue for the project.

… The PCPIR project, which is going to spread over an area of 250 square kilometers at Paradip with the Indian Oil Corporation’s (IOC) oil refinery as anchor tenant, is expected to attract investment to the tune of Rs 2,75,000 crore.

The major chunk of investment, about Rs 23,000 crore, will come in petroleum and petro-chemical sector.

The project will generate employment opportunity for more than 2 lakh people when it is fully commissioned.

Following are some pointers on PCPIRs.

• Slides on the scheme.

Following is from a report in Hindu.

Indian Oil Corporation has tied up finances for its Rs 29,777 crore Paradip refinery project in Orissa that would be commissioned by March 2012.

"We have received commitments from a consortia of banks," IOC Chairman Sarthak Behuria said.

SBI Caps, which was mandated to arrange Rs 14,700 crore debt for the project, has managed Rs 14,900 crore from 21 banks. State Bank of India (SBI) will be the largest lender with Rs 4,200 crore exposure.

IOC was likely to sign loan agreements with the consortia of banks on May 14.

"We will draw (from these loans) as and when we need them," he said but did not give details.

IOC is targeting commissioning of the refinery in first quarter of 2012. The board had recently split the refinery cum petrochemical complex into two, deciding to do the refinery first and the chemical unit will follow later.

Paradip refinery is being configured to process the toughest, heaviest and the most dirtiest crudes which are cheaper than the cleaner and easier varieties. The refinery will have a Nelson Complexity Index of 15.

Following is from a report in steelguru.

TATA Power Company & Indian Oil Corporation have decided to float a new company for jointly developing a 1,000 MW coal based power project at Paradip in Orissa. The shareholding pattern of the JV would be 74-26 for TPC and IOC, respectively.

As per report, the proposed project is essentially being set up as a captive project to meet the power requirements of IOC’s 15 million tonnes per annum integrated refinery cum petrochemicals complex at Paradip. The plant may also supply power to the proposed steel plant of the TATA group in Orissa as also other industries in and around the Paradip complex.

Under the JV agreement, Indian Oil is committed to source at least 51% power and the surplus generation can be traded by the JV company. The authorized share capital of JVC will be INR.1,200 crore and the capital will be increased to meet the requirement of further investment as and when called for.

Based on a feasibility study carried out by TPC & IOC the tariff for power supply to the Paradip complex has been estimated on annual levelised basis for 25 years operation at INR 2.46 per unit. The levelised power tariff on similar basis for captive generation within Paradip complex has also been assessed jointly with Foster Wheeler which indicates a significantly higher value of over INR 5 per unit.

Following is an excerpt from a report in Telegraph.

The Centre had accorded provisional approval to five, proposed petroleum, chemical and petrochemical investment regions including the one being planned in Orissa and had asked if the state government would be investing in the project infrastructure.

The authority consented to invest Rs 2,700 crore on the infrastructure development, while the Centre and central public sector undertakings, including the Indian Oil Corporation, have already agreed to spend Rs 5,800 crore on this score.

In all, Rs 15,273 crore would be spent on the infrastructure development at the project site and on the periphery, official sources said.

According to the vision plan, the proposed region would be developed in an area spread over 250sqkm without any displacement. The areas concerned would be developed into modern “city villages”. The annual project turnover has been estimated at Rs 423,500 crore.

There would be a value addition of the petroleum-related products to the tune of Rs 43,000 crore and an equal amount in shape of export earnings. The total tax income has been estimated at Rs 42,000 crore, of which Rs 32,100 crore is expected to go to the state exchequer.

Following is an excerpt from a report in Pioneer.

Indian Oil Corporation (IOL)’s Chairman S. Beuria called on Chief Minister Naveen Patnaik on Saturday at Orissa Bhawan in New Delhi and appraised him about the progress on 15 MMTPA Paradip- refinery -cum- aromatic complex.

He indicated that approximately Rs 1,254 crore had already been spent on the project.

“Due to cost and time overruns, the project cost is likely to go up to Rs 46,000 crore and the project will take 42 months to get completed,” he said.

He further indicated that they have already received environmental clearance from the Union Ministry of Environment and Forest. Construction of water and power supply system has also been completed. The work of dredging and reclamation of land is under progress.

Beuria informed Patnaik that the seven year- holiday available under Section 51-B will be withdrawn effective from April 1, 2009 It would affect the viability of the project.

… Patnaik asked the Beuria to take up the peripheral development works for the benefit of the project affected people of Jagatsinghpur district.

Following is an excerpt from a report in Financial Express.

The Paradip Petrochemicals & Petroleum Investment Region (PCPIR), which has raced ahead to become one of the five fast track projects, is expected to attract a total investment to the tune of Rs 2.75 lakh crore.

The IL&FS, the consultant for the Orissa project, Monday gave a presentation to the senior officials of the state government about the development of the project. The presentation was witnessed by chief secretary, Ajit Kumar Tripathy, development commissioner RN Bohidar, industries secretary Ashok Dalwai, commerce & transport principal secretary Priyabrata Patnaik, special secretary Guru Ray, IDCO managing director Vishal Dev, among other senior officials.

The IL&FS vice-president, Anil Goel, said that the Orissa project, which was lagging behind, has made good progress during the last two months. According to him, the project is now at par with the projects proposed at Visakhapatnam in Andhra Pradesh, Dahej in Gujarat and Mangalore in Karnataka. He said that the project has been highly appreciated by the Centre.

Goel, who was accompanied by his Orissa head Manoj Panda, said that the project, which will come up over an area of 28,500 hectare at Paradip, will have Indian Oil Corp’s (IOC) Rs 26,000 crore petrochemical complex as anchor tenant. Besides the IOC investments, the project will attract investment to the tune of Rs 23,000 crore in township, housing and allied sectors, Rs 15,275 crore in external infrastructures like port, airport, cargo complex, road, while Rs 2.30 lakh crore will come in the hardcore industries of the petrochemical sectors. He said the investments would be by the private corporate houses, public sector undertakings, and in the mode of BOOST and PPP.

Following is Samaja’s take on it.

Following are extracted from a report in the Pioneer.

• the State Commerce and Transport Department, in its sanction order-29753, dated May 30, 1970, had allotted 3, 793.21 acres in the first phase and 2285.23 acres in the second phase to the Paradip Port Project. Most of the lands were obtained from Sandhakuda, Bijayachandrapur, Balijhari and Bhitaragara villages, under Kujang Tehsil. According to the official sources, about 6,889 acres of land were supplied to the Paradip Port Trust.
• The State Government had provided 62.19 acres of land to the Paradeep Phosphate Ltd, which is a fertiliser plant that started its project in 1982. The PPL had acquired 405 acres of private lands from Bhitaragada village on its own.
• … in Paradeep-Cuttack railway line 137 acres of land were acquired from the Bhitaragada village.
• Kujang Tehsil had about 1,500 acres of Government land in the Musadiha area that was provided to the Oswal Fertiliser Plant in the year 1995-96. The plant had also purchased about 500 acres of private land from the local people.
• … in 2000 Indian Oil Corporation had purchased 3,300 acres of private land from the local people of 17 villages for its refinery project, which was to be set up on the outskirts of Paradip but the project is yet to come.
• for much-hyped Haridaspur-Paradip Railway Project, widening of the NH-5 and recent expansion of Cuttack-Paradip State Highway, thousands of acres of both Government and private lands have been acquired from Kujang Tehsil.
• Essar, the 6 million tonnes steel plant project, moves for the land acquisition in Paradip and the project needs about 1,950 acres of land. The State Government has already given 350 acres of land to the plant. It will procure the remaining required land from private land.
• Posco has shown a demand of about 4,004 acres of land in Dhinkia, Gadakujang and Nuagaon villages for its steel plant and port project. The State Government has given assurance and has provided Posco most of the encroached Government and forestlands. The rest of the required land would be purchased from private landowners.

Following is an excerpt on this from a report in Business Standard.

GAIL India, the country�s largest transporter and marketer of gas, will diversify from its core business to invest in a fertiliser and chemical plant at Talcher in Orissa. The gas utility will form a joint venture with government-owned Rashtriya Chemicals and Fertilisers (RCF) to set up the Rs 2,400 crore plant which will have a capacity to produce 2,940 tonne per year of urea, GAIL, CMD, UD Choubey said.

An agreement between GAIL and RCF will be signed soon, Choubey said.

“The equity structure is yet to be worked out. RCF will carry out a feasibility study on the integrated fertiliser and chemical plant,” Choubey said.

The plant will be fed with 7 million cubic metres a day (mcmd) of gas produced through the surface coal gasification process for which Coal India (CIL) will supply around 5,000 tonne of coal.

“We are in constant touch with CIL. They have in-principle agreed to supply the coal,” Choubey said.

Explaining the rationale behind diversifying into fertilisers, Choubey said that the trigger for the move was that the company wanted to increase its presence in the gas business in east India. “We have always been supplying gas to fertiliser plants. This is just a move forward,” Choubey explained.

Following is an excerpt from a New Indian Express report.

The Assembly Committee on Industry has suggested that dedicated industrial parks should be set up for micro, small and medium scale industries in Kalinga Nagar, Jharsuguda, Paradip, Rayagada, Angul and Dhenkanal in view of the large number of mega industries coming up in several industrial zones in the State.

In its latest report, the committee said such parks should be specially earmarked for ancillary and downstream industries. It observed that considering the importance of the small and medium enterprises in employment generation and economic growth of the State, priority attention should be given for the revival and promotion of these sectors.

Official sources maintained that till November, 2006, investment in these two sectors had touched Rs 2,652.8 crore with employment generation of 5.48 lakh. Cluster approach has been adopted for development of small scale industries and major clusters have been identified for development and marketing linkage with the assistance of United Nations Industrial Development Organisation (UNIDO).

The panel, however, observed that though 45 MoUs had been signed for establishment of steel plants in the State, progress has not been satisfactory. Of these, 20 companies have invested Rs 12,085 crore and started commercial production by December, 2006. These companies have created direct employment opportunities for 9,131 persons.

In the steel sector, investment has been estimated at Rs 1,86,499 crore with a total capacity of 73.43 million ton per annum. In the aluminium sector, two companies have signed MoUs with a proposed investment of Rs 25,000 crore.

Indian Oil Corporation is also setting up a refinery and petrochemical complex of 15 million ton capacity per annum with an investment of Rs 25,000 crore. Official sources said a chemical and petrochemical investment region is proposed to be set up at Paradip.

The committee has suggested that polytechnics should be established in all districts of the State and industrial training centres in all the block headquarters.

Besides, the 10 ITIs in the State should be upgraded gradually with 75 percent Central assistance, it added.

Following are excerpts from a sify.com report.

State-owned Indian Oil Corporation (IOC) is setting up an oil refinery-cum-petrochemical complex at Paradip in Orissa, with an installed capacity of 15 million metric tonnes per annum (MMTPA) at an estimated cost of Rs 25,646 crore.

”The project is expected to be completed by October 2011,” Minister of State for Petroleum and Natural Gas Dinsha Patel said in a written reply to the Lok Sabha.

He said the land acquisition was carried out by Orissa Government by consent agreement under section 11(2) of the Land Acquisition Act, based on the compensation package for private land fixed by Orissa Government in October, 1999.

IOC has already acquired 3,347 acres of land for Paradip Refinery Project.

The progress made on the various phases of the project includes the construction of bridges over Santra Creek, approach road including railway over-bridge for the refinery connecting NH-5A to refinery site have been completed.

Tecnological selection for all major units has been completed.

Residential accommodation for construction phase, CISF colony, coastal approach road and green belt development are under various stages of construction.

Project Management Consultant (PMC) has been selected for Front End Engineering and Design (FEED) phase of the project on December 1, 2006.

Patel said the environmental clearance for the project has been received on July 6, 2007.

He added an amount of Rs 2281.87 crore has been sanctioned for Paradip Refinery project for carrying out pre-project activities, out of which, Rs 778.32 crore has been spent as on July 31, this year.

Business Standard in a report mentions the following numbers in regards to IOC’s plan in Paradip.

IOC is also planning around Rs 6,000 crore petrochemical complex at its upcoming 15 mtpa refinery in Paradip, Orissa.

It gets reported once in a while [Hindu1, Hindu, Technoligence,iocl ] that IOC plans a new 300,000 barrels a day refinery and petrochemical complex at Paradip. Timesnow.tv has a recent report on this.