After SEZs, it is the petrochemicals, petroleum and chemicals investment regions (PCPIRs) for oil companies. The government has decided to rope in public sector oil companies to anchor the proposed investments in the country.Companies like Oil and Natural Gas Corporation (ONGC), Indian Oil (IOCL), Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL) and Gail could take a lead in the seven zones identified by the government. Commenting on the development, Satwant Reddy, secretary, department of chemicals and petrochemicals, told "The government has identified the locations for setting up PCPIRs, mainly for the export market.According to the draft policy, the anchor tenant has to be a refinery or a petrochemical feedstock unit. Since most of these oil companies are planning their refineries or petrochemical complexes near these regions, they will be asked to anchor it.ONGC is likely to anchor the PCPIR to be set up in Mangalore (Karnataka) and Dahej (Gujarat). Similarly, IOC is expected to anchor the proposed PCPIRs in Paradeep (Orissa), Panipat (Haryana) and Haldia (West Bengal). HPCL could be the lead developer at Vizag (Andhra Pradesh), while BPCL or GAIL could work out the Kochi (Kerala) project.

The government is planning to invest around Rs 3,000 crore to Rs 5,000 crore to develop each of the regions. The petrochemical hubs would be set up in area of 250 square km and 40% of it have to be the minimum processing area, sources said. The government has appointed Mott McDonalds as the advisors to the process.The first PCPIR is expected to come up in Mangalore. The upstream oil major is already investing over Rs 35,000 crore in setting up 15 MMTPA refineries, petrochemical complex, power and LNG plants in this region.The West Bengal government has recently approved IOC’s plan to develop the PCPIR in Haldia. The government has asked KFS Consultants to prepare the master plan for this region, which is expected in six months. Indonesia-based Salim Group would be the lead developer of this region. The PCPIR policy is likely to go for cabinet approval by this month end.

IndianOil has entered into an agreement (MoA) with the West Bengal Industrial Development Corporation (WBIDC) to be the anchor investor in the proposed chemicals hub in Haldia, set to come up in an area of 10,000 acres.To begin with, the company has proposed to set up a 15 million-tonne refinery at an anticipated cost of Rs 15,000 crore in association with MNC oil companies. The company would also explore the possibility of setting up facilities for production of petrochemical products.A detailed feasibility report in this context would be ready within the next six to eight months. As anchor investor, IOC will also partner the State Government’s effort to attract both foreign and domestic investments in the hub. The State Government has already entered into an agreement with the Salim Group of Indonesia as anchor developer of the chemicals hub.Addressing a joint press conference here, with the IOC Chairman, Mr Sarthak Behuria, the State Chief Minister, Mr Buddhadeb Bhattacharjee, said that a co-ordination committee comprising representatives of both the State Government and IOC would start working on the proposed investment with immediate effect

.Mr Behuria said that IOC has already committed an investment of Rs 2,000 crore for expansion and modernisation of its existing six million tonne refinery at Haldia and is presently commissioning a crude pipeline from Paradip to Haldia.The State Commerce and Industry Minister, Mr Nirupam Sen, who was also present at the meeting, said the State Government was pursuing, with the Centre, to set up a high-sea port (with over 15 metres draft) in the region. Since Haldia and Kolkata ports suffer from lack of draft, the new sea port could hold a pivotal position in making the chemicals hub and IOC investment into a reality."The Chief Minister discussed the issues related to the sea port with the Prime Minister, Dr Manmohan Singh.

The Prime Minister has assured that a committee comprising State and Central representatives would appoint a consultant soon to explore the feasibility of the project," Mr Sen said.It may be mentioned that responding to a tender floated by the Union Shipping Ministry, nine consultancy agencies have already expressed interest to prepare a feasibility report.The chemical hub would be a part of the 280 square kilometre petroleum, chemicals and petrochemicals industrial region (PCPIR) proposed to be set up in the State. The PCPIR would include the entire existing establishments and industries of Haldia and its adjoining areas in East Midnapore district.According to Dr Sabyasachi Sen, Principal Secretary of Commerce and Industry Department, apart from the existing industries and the proposed chemicals hub, the PCPIR would include a 12,500-acre multi-product SEZ also to be developed by Salim Group and an SEZ for pharmaceuticals industry.A master plan ensuring use of at least 40 per cent of the land for industrial purposes for the entire PCPIR would be prepared soon and placed for necessary approval from the Centre.

India’s largest conglomerate is pinning its hopes on an Arabian Sea coast oil refinery, poised to become the world’s largest, to catapult it and the country to industrial giant status. "It is not just a refinery. We believe the refinery challenges the paradigm that China is forging ahead of India with its industry," Reliance Industries Executive Director Hital Meswani told reporters on a tour of the Jamnagar complex.The sprawling facility in Gujarat state, which opened in December 1999, occupies 30 square kilomtres (11.5 square miles)  one-third the size of Manhattan — and has helped move India from being a net importer of refined petroleum product to an exporter. Reliance is set to invest a further billion dollars in a bid to double output. Although Reliance gives few financial details for Jamnagar, analysts believe the facility will move into profit in 2009."It’s a refinery for the world, based out of India," Meswani said of the complex, set for another expansion in 2008 — and a move to the world’s top spot from its current third place behind Venezuela and South Korea.

We want to take India to the world and to transform Jamnagar as the refining hub for the world," he said. "India is often compared to China — India for its services sector and China for its industrial sector. (But) we want to show what India can do on the manufacturing and industry sides.In China, the industrial sector accounts for 46 percent of GDP, compared to 27 percent in India. Reliance is a corporate behemoth that has straddled India’s economy for decades with activities in petrochemicals, oil and gas, refining, power, insurance and telecommunications. Situated in the Gulf of Kutch on the Arabian Sea, the refinery took just three years to build. The company says its 5,000 kilometres (3,200 miles) of pipes, 1.7 million tonnes of concrete, 14,000 kilometres of cable and equivalent in steel of 16 Eiffel towers represent a record. Work is entirely automated and overseen by engineers working out of underground control rooms, which are adorned with the portraits of the late Reliance founder Dhirubhai Ambani. None of the employees belong to a trade union. It also has its own power station, a super tanker port, fire station, medical teams and security service, 170 kilometres of roads and a residential area of 2,500 homes — making it virtually a self-sufficient "state within a state".

A green belt is also hoped to lead to the production of 3,000 tonnes of mangoes a year."The volume, the energy consumption, the capital costs (and) the integration make the refinery unique in the world," said the facility’s sector chief, D.M. Katre. The facility is currently producing 33 million tonnes of refined products — petrol, diesel, kerosene and liquefied petroleum gas.

Hindustan Petroleum

Oil India Ltd (OIL) has received an offer from Hindustan Petroleum Corporation Ltd (HPCL) to buy stake in the latter’s Bhatinda refinery project. OIL sources told that a committee set up by the company was examining the offer.OIL has been offered a 25-per cent stake in the refinery, which is scheduled to come up by 2011.

The sources, however, maintained that OIL has not made any commitment to HPCL.Guru Gobind Singh Refineries Ltd (GGSRL), a subsidiary of HPCL, was incorporated for implementation of a grass root refinery of 9 million metric tonnes per annum (MMTPA) capacity at Bhatinda, Punjab, at an estimated cost of $3.5 billion. HPCL was in talks with oil majors such as British Petroleum, Saudi Aramco and Total, for partnering the project but without much success.Earlier this year, British Petroleum walked out of the project as it found investing in refining and marketing in India unattractive.