The scale, the plans, the effort involved in the creation of PCPIR are unprecedented and unheard of anywhere in India. It is sure to transform many lives if the plans materialize...
Sunday, May 25, 2008
PCPIR >> A Jaggernaut along the Kakinada-Visakhapatnam Coast
Friday, May 23, 2008
Reliance gas production put off
Decision is because of operational problems
RIL from KG basin gas field expected to produce 80 mcm
The company holds a 90 per cent stake in the D6 block
Rajahmundry: Mukesh Ambani’s Reliance Industries which struck huge gas from its D6 block in the Krishna-Godavari basin in the Bay of Bengal and set to go for production from July has postponed its plans to the year-end.
After entering into an MoU with GAIL (India) for distribution and transportation it has finalized to start production in July and proposed to invest $ 5.2 billion in its facility.
As per Reliance Industries sources, the RIL is not in a hurry to start production immediately in KG Basin as it has encountered some operational problems onshore. The RIL is also having some tie-up problems with Andhra Pradesh, Gujarat & other states in distribution of gas.
The RIL from its KG basin gas field is expected to produce 80 million cubic meters (2.8 billion cubic feet) of gas per day, out of which it will take around 60 million cubic meters to its Gujarat and rest of 20 million cubic meters will be given to its customers in Andhra Pradesh.
Reliance Industries believes that there are reserves of more than 14.5 trillion cubic feet in the D6 block. The company currently holds a 90 per cent stake in the deepwater D6 block. The remaining 10 per cent is owned by Canada-based company Niko Resources.
DistributionAs per Reliance sources, at present the ONGC, Cain Energy and others have a tie-up with GAIL (India) for distribution of gas which they are producing from KG Basin. The distributor’s network in Andhra Pradesh includes NFCL (Kakinada) 2 million cubic meters per day, Lanco, Vijayawada 1.5 mcm, GVK 1.00 mcm, REL, APGPCL, Spectrum, Regency Ceramics, Dloex, Rolex paper mills, Andhra Sugars and so on. “All put together there will be around 38 to 40 customers for us.
They need a maximum of 17 million cubic meters per day. But, now they are getting only 7 million cubic meters a day”-said GAIL sources.The Reliance Industries currently produces a wide range of products, ranging from polymers to petroleum to garments.
The Reliance is also planning to have a tie-up with Bhagyanagar Gas Company Limited for opening CNG outlets in Hyderabad, Vijayawada and Visakhapatnam in first phase and Rajahmundry, Tirupati, Kurnool, Nellore and Karimnagar in second phase.
Tuesday, May 20, 2008
Mega Plan for Industrial Corridor in Andhra Pradesh
Deccan Chronicle -Kakinada, May 19: The government plans to spent Rs 20,000 crore to develop ‘linkages’ for the industrial corridor between Kakinada and Visakhapatnam. These include roads, railways, airports, ports and other external infrastructure.
The proposal has got the nod of the Centre a few days ago. Under this project, a 138 km-long coastal corridor will be built between Kakinada Port and Gangavaram Port (near Vizag) with six-lane roads and pipeline corridor at a cost of Rs 1,062 crore. In the subsequent phases the link road will be converted into an eight-lane road by spending Rs 875 crore.
As part of the programme, the present Asian Development Bank-sponsored road will be converted as a four-lane road between Kathipudi and Kakinada Port in an extent of 51.07 km. In addition to this, the National Highway 214 will be developed into four-lane road from the present two-lane at a cost of Rs 260 crore.
Later, it will be developed into a six-lane road at a cost of Rs 387 crore.As part of the industrial corridor development, the existing NH 5 will be developed into six-lane road for 190 km between Rajahmundry and Visakhapatnam.
In addition to this, the other external road links will be provided with Rs 512 crore. In all, Rs
4,021 crore will be spent on the road development activity as part of Industrial corridor project. For the development of rail links Rs 1,010 crore will be spend in the corridor. A rail link of 26 km will be taken up at a cost of Rs 102 crore between APSEZ and Gangavaram.For the provision of rail freight stations and for Gangavaram Port logistics Rs 730 crore will be utilised.
Further, authorities are allocating Rs 2,640 crore for developing airports in the region. This would include the development of the new Visakhapatnam International Airport with Rs 2,000 crore and the upgradation of Rajahmundry airport at Rs 120 crore. These proposals were discussed at a meet held recently by the Infrastructure Development Corporation of Andhra Pradesh with allied departments.
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AP looking at integrating infrastructure development
Hyderabad, May 19, 2008: The Andhra Pradesh Government is looking at integrating infrastructure development for the proposed Costal Corridor and the Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) projects.
“Since the first phase of the proposed Costal Corridor will be from Visakhapatnam to Kakinada, where the PCPIR project is slated to come up, the State Government is looking at developing work relating to basic infrastructure simultaneously,” Mr Sanjay Jaju, Vice-Chairman and Managing Director of Infrastructure Corporation of Andhra Pradesh (INCAP), told Business Line here today.
Mr Jaju also said that International Finance Corporation (IFC), an arm of the World Bank, will implement the road projects in the area. He added that they got a feel of what the development in the area will look like once the project is implemented.
PCPIR project
A Government official also said that a meeting of the committee of Union Secretaries is slated for May 21 in New Delhi, to take a final decision on the PCPIR project which would in turn be recommended to the Cabinet for the final approval within the next one month.
Andhra Pradesh has turned out to be one of the prime contenders for the proposed PCPIR being envisaged by the Central Government.
The project in Andhra Pradesh is estimated to attract investments to the tune of around Rs 3 lakh crore and as per current estimates the State has more than half of the total investment envisaged for the project.
“IDFC is the consultant for the Chennai-Bangalore-Mumbai industrial corridor and we have had a meeting with them so that our proposal can be studied,” he said referring to the State proposal to join the project.
Initial plan
According to initial plan, the State Government is proposing development stretch from Satyavedu to Chennai and also development of Nellore to Bangalore region covering Rajampet, Kadapa, Ananthapur and Hindupur.
As per Government estimates, the total corridor in Andhra Pradesh is likely to cover 300 km.
HPCL-Mittal Energy : Total Consortium to fuel 3.5 L cr Investment in Petro Hub
20 May, 2008NEW DELHI: A cabinet secretary-chaired panel last week cleared the first mega oil, chemical and petrochemical investment hub, which is expected to attract an investment of Rs 3,43,000 crore.
Mittal Energy Investments, Total SA of France and oil refining and marketing major Hindustan Petroleum Corp (HPCL) would invest Rs 32,000 crore in the proposed petroleum, chemical and petrochemical investment region (PCPIR) which the Andhra Pradesh government has proposed in the Vishakhapatnam-East Godavari region.
The Cabinet committee on economic affairs (CCEA) is expected to consider the proposal on Thursday to give it the final go-ahead before the companies start construction work. The state government has a small administrative step to complete the process: notify the 603-sq km area as the petroleum, chemical and petrochemical hub, it is learned.
The massive investment — half of which has been committed by the investors — is expected to change the face of the southern state with anticipated exports of Rs 58,000 crore a year, tax receipts of Rs 46,500 crore a year and creation of 12 lakh jobs. The investment region is expected to account for 9% of the total value of goods and services produced in the state.
The Rs 32,000-crore investments by the HPCL-Mittal Energy-Total SA consortium will be the anchor tenant in the investment region, with numerous manufacturing units in the pharmaceutical, chemical, petrochemical and other specialised downstream industries coming up around it.
The consortium will set up a 15 million metric tonne a year (mmtpa) refining-cum-petrochemical complex at the Andhra Pradesh SEZ within the region. Besides this, HPCL is expected invest another Rs 10,000 crore to double its existing 7.5 mmtpa refining capacity in the region. Public sector refining major Oil & Natural Gas Corp (ONGC) would invest Rs 31,000 crore to set up a refinery and polypropylene unit in Kakinada SEZ.
The plan is to develop a number of SEZs, industrial parks, infrastructure projects and free trade and warehousing zones in the Vishakhapatnam-East Godavari region. While the central government is expected to provide financial support of Rs 5,214 crore for building roads, ports and airports, Andhra Pradesh intends to invest Rs 2,132 crore in building infrastructure. The state will also facilitate private sector participation in infrastructure creation at a cost of Rs 10,565 crore, it is understood.
Source: Economic Times
Sunday, May 18, 2008
Hinduja Group keen on Kakinada refinery sans ONGC
[May 12-18, 2008]
Hinduja group plans to go ahead and set up a Rs 25,600 crore refinery at Kakinada, Andhra Pradesh, even if its indecisive project partner, Oil and Natural Gas Corporation Ltd, opts out.
"We have given in writing to the Andhra Pradesh Chief Minister that we are keen to set up the project, with or without ONGC," Hinduja Group Chairman G.P. Hinduja told PTI.
ONGC had put a slew of conditions, including Andhra Pradesh government giving 950 acres of land free of cost, sales tax exemption and fiscal concessions equivalent to a special economic zone, for setting up the 15 million tonne refinery-cum-petrochemical project at Kakinada.
The concessions would cost the state government about Rs 16,000 crore. Even if ONGC were to join the project, the London-based Hinduja group is keen to take a majority stake, he said. However, Hinduja was optimistic about the economic feasibility of the project and said the group has also informed the state government of the source of crude oil for the refinery.
After the exit of Subir Raha, who had drawn a blueprint to catapult ONGC to become second largest refinery in the country, ONGC has fettered away the downstream expansion plans and the new management has taken a dim view of the Kakinada project. It also wants the stated to give free power and water to the project, provide road and rail connectivity, develop sewage and refinery effluent disposal system and give communications connectivity to enhance the 10.27 per cent return on capital currently.
Source — PTI
Hinduja group plans to go ahead and set up a Rs 25,600 crore refinery at Kakinada, Andhra Pradesh, even if its indecisive project partner, Oil and Natural Gas Corporation Ltd, opts out.
"We have given in writing to the Andhra Pradesh Chief Minister that we are keen to set up the project, with or without ONGC," Hinduja Group Chairman G.P. Hinduja told PTI.
ONGC had put a slew of conditions, including Andhra Pradesh government giving 950 acres of land free of cost, sales tax exemption and fiscal concessions equivalent to a special economic zone, for setting up the 15 million tonne refinery-cum-petrochemical project at Kakinada.
The concessions would cost the state government about Rs 16,000 crore. Even if ONGC were to join the project, the London-based Hinduja group is keen to take a majority stake, he said. However, Hinduja was optimistic about the economic feasibility of the project and said the group has also informed the state government of the source of crude oil for the refinery.
After the exit of Subir Raha, who had drawn a blueprint to catapult ONGC to become second largest refinery in the country, ONGC has fettered away the downstream expansion plans and the new management has taken a dim view of the Kakinada project. It also wants the stated to give free power and water to the project, provide road and rail connectivity, develop sewage and refinery effluent disposal system and give communications connectivity to enhance the 10.27 per cent return on capital currently.
Source — PTI
Friday, May 16, 2008
Kakinada SEZ...Kicks up Dust and Tempers
Kakinada SEZ seems to generate a lot of heated debate and resistance...
Thursday, May 15, 2008
ONGC's LOSS is Other Companies GAIN
Living up to its reputation that Public Sector Units/Companies (PSU) should run as slow as possible and take years to make a decision, ONGC lives up to the laxity evident in PSUs.
Read here for more news on its procrastination near Kakinada...
THREE Districts to Benefit from NH-214
Kakinada, May 14: The National Highway 214 from Kathipudi in East Godavari to Pamarru in Krishna district is expected to come into full utilisation by the first half of 2010 with the completion of the road bridge on Vainateya river en route.
The highway, for a distance of 242 kilometre, was taken up by the ministry of surface transport and highways (MSTH) to meet changing transport needs along the coast of East, West Godavari and Krishna districts in the coastal Andhra region.
The highway, which starts at Kathipudi from NH 5, connects NH 9 at Pamarru. It passes through Pithapuram, Kakinada, Yanam (under the Union Territory of Pondicherry), Mummidivaram, Amalapuram, Bodasakuru, Chinchinada, Bhimavaram to Pamaru in Krishna district. It covers the coastal areas of the three districts it passes through. At present, it takes a diversion at Bodasakurru between Amalapuram and Chinchinada in the Konaseema area at the Gannavaram aqueduct.
The road bridge at Bodasakurru on the Vainateya branch of river Godavari was taken up at a cost of Rs 70 crore in 2007 and is expected to cater to changing transport needs by the first half of 2010. On coming into full utilisation, the road is expected to provide a link road along the sea coast from Prakasam to East Godavari.
NH 214 A from Digumarru in West Godavari (near Narasapuram) to Ongole in Prakasam passes via Krishna and Guntur districts for a distance of 254 km. The road, in the next couple of years, is also expected to cater to the needs of industrial units being promoted along the coastal areas of the districts in addition to transport needs of the K-G basin off shore drilling operations in which major entrepreneurs like ONGC, Reliance, Gujarat State Petroleum Corporation (GSPC) and Cairn Energy are involved.
Besides this, the NH is also expected to cater to the needs of the farming community for transporting farm produce along the area. NH 214 and 214 A executive engineer B. Mallikarjuna Rao said that the two highways would come into full utilisation with the completion of road bridges by first half of 2010
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