PCPIR to be given a fresh lease of life; VMRDA pitches for draft plans
An agency has been appointed to update the Master Plan, which was prepared a long ago
image for illustrative purpose
Visakhapatnam: After a prolonged delay since it was mooted in 2007, Andhra Pradesh Government has decided to give a fresh lease of life to Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR)--a planned industrial zone between Visakhapatnam and Kakinada.
Despite several rounds of discussions and finalisation of a Master Plan, the ambitious project approved in 2009, had failed to take off due pack of investor interest and gaps in execution
The project was supposed to attract investment to the tune of Rs3.43 lakh crore in an area of 640 sq km along with associated infrastructure like ports, roads and rail links to give a boost ancillary and downstream industries and ensuring greater efficiency through co-siting and networking. The project is aimed at attracting mega projects to increase exports and imports and provide employment opportunities to locals. In 2023, the Government of India decided to incentivise the new PCPIR Policy to reduce import-dependence so as to bring an investment of Rs34 lakh crore pan India. Crude market is highly volatile and to meet any exigency, a crude cavern, first of its kind, has been developed in Visakhapatnam. At a review meeting here, Metropolitan Commissioner KS Viswanathan sought fresh reports from the officials concerned from Visakhapatnaman, Anakapalle and Kakinada districts to implement the PCPIR project. An agency has been appointed to update the Master Plan, which was prepared a long ago. Confirming a lot of gaps in implementation of PCPIR project, a recent report drafted by NITI Aayog stated that it failed to attract anchor tenant and is faced with challenges in land acquisition, regulatory clearances and logistics support. Visakhapatnam at present has two ports including a Government of India-owned Visakhapatnam Port Authority (VPA) and Gangavaram Port owned by the Adani Group. Kakinada is home to three ports including a deep water port operated by Kakinada Seaports, anchorage port and gateway port (under development).
Another port is proposed as a captive port near Nakkapalli as part of ArcelorMittal-Nippon Steel India (AMNS)'s greenfield 24 million tonnes steel plant with an estimated investment of Rs1.4 lakh crore. While Visakhapatnam has HPCL Visakh Refinery with a capacity of 15 million tonnes, Anakapalle district is home to Jawaharlal Nehru Pharma City (JNPC).
The Centre has sanctioned a Bulk Drug Park at Nakkapalli for which a public hearing was recently held amid strong protests from several farmers and activists. The project is envisaged with an investment of Rs.1877 crore and the first phase is likely to be ready by March, 2026.
The park once completed is likely to attract an investment of Rs11,542 crore and provide jobs to 54,000.
Visakhapatnam Chennai Industrial Corridor (VCIC), which is expected to be a gamechanger in the region, is being funded by Asian Development Bank (ADB). It is aimed at improving the connectivity through multimodal transport networks and become a gateway for multiple supply chains.
