___________

(Thanks to a reader for the pointer.)

Following is from a report in Telegraph.

The Memorandum of Agreement (MoA) for setting up the Rs 2.7 lakh crore petroleum, chemicals and petrochemicals investment region (PCPIR) near Paradip was signed between the state and the Centre today.

The PCPIR will come up over 284.15sqkm in Jagatsinghpur and Kendrapara districts with a proposed investment of Rs 2,77,734 crore.

While Orissa Industrial Infrastructure Development Corporation (Idco) chairman-cum managing director Priyabrata Patnaik represented the state, additional secretary of the department of chemical and petrochemicals Geeta Menon signed on behalf of the Union government. Patnaik said, “The MoA was signed and the project has got legal sanction. All the work for the project will now proceed according to the plan.”

… Sources said the state government has requested the Centre to take up the project work in the 12th five year plan. Under the plan, an airport will come up at Paradip and two direct roads from Bhubaneswar to Puri Paradeep will be built. One of these will begin from Uttara Square on the outskirts of Bhubaneswar.

Idco will act as a nodal department to help the government develop the PCPIR. “A meeting chaired by CM Naveen Patnaik is likely to be held this week to finalise the detailed project report.”

An apex body under the chairmanship of the chief minister has already been constituted to look into the implementation of the project. Under the proposed plan, a regional development authority (RDA) will be set up. The RDA will have autonomous power and other authorities will not be able to intervene in the work of the RDA.

… Officials hope that land acquisition for the project would not be a problem. “Instead of taking lands directly from people, we will go for swapping of land. If the government takes one acre of land, the same area of land will be allotted to the owner in another place,” said an official associated with the project.

Sources said the government had asked the Centre to build a coastal corridor that would connect Paradip to Chennai. “Andhra Pradesh has also supported Orissa. The Centre has taken the demand seriously,” said the official.

The Indian Oil Corporation (IOCL) will be the anchor tenant for the project. The PCPIR will also include the IOCL’s refinery at Paradip, which in the first phase, will have an investment of Rs 29,777 crore. The refinery will have a crude and vacuum distillation unit, a hydro-cracking unit and a delayed coker unit. It will also have an integrated gasification combined cycle plant for production of steam, power and hydrogen from petroleum coke for captive use in the refinery.

Another leading player, Deepak Fertilizers, will set up a greenfield ammonium nitrate plant in the PCPIR. Tata Steel and the South Africa-based Sasol have expressed interest in setting up a coal to liquid project under the PCPIR. The project is likely to come up by 2018 in an area of 3,000 acres. The plant will produce 80,000 barrels of liquid fuel from coal per day.

According to the plan, Rs 13,634 crore will be invested for infrastructure development in the PCPIR. Of this, the Centre will provide Rs 716 crore under Viability Gap Funding (VGF) to ensure infrastructure linkages such as rail, road (national highways), ports, airports and telecom through public-private partnership. The state’s share will be Rs 1,796 crore while the remaining Rs 11,122 crore will be generated through private participation.

Following is an excerpt from a report in Financial Express.

New infrastructure projects in Gujarat, Andhra Pradesh, West Bengal, Tamil Nadu and Orissa are set to get a major push in the five years starting 2012 as various government agencies will be prioritising building of roads, rail networks, airports and sea ports in these states that are setting up mega petroleum and petrochemical investment regions.

Five massive regions meant to attract investments in the petrochemical and allied sectors are now at various stages of implementation at Dahej in Gujarat, Visakhapatnam-Kakinada in Andhra Pradesh, Haldia in West Bengal, Paradeep in Orissa and Cuddalore and Nagapattinam in Tamil Nadu. These investment zones, each of which is not less than 250 square kilometres, are expected to attract a collective investment of R8,63,664 crore and create more than 40 lakh jobs during the 12th Five-Year Plan.

… “We will get infrastructure build for these projects using various existing schemes through appropriate prioritization,” K Jose Cyriac, department of chemicals and petrochemicals secretary, said. Government entities like the National Highways Authority of India, shipping ministry and the railways ministry would emphasise on fresh projects in these regions while allocating resources in the coming years. In the case of small connecting roads wherever required, the state governments concerned would include them in their own development plans.

Following is an excerpt from a report in Orissadiary.com.

… Orissa Govt has gone  ahead to make budgetary provisions for providing basic infrastructure to attract the investors to this region. The expenditure requirement was discussed today in a high level meeting held under the Chairmanship of Chief Secretary Bijaya Kumar Patnaik in the Secretariat conference hall.

It has been decided in the meeting that the Project is to  covering 284.15 Sq.Kms. in Jagatsingpur and Kendrapara Districts will be developed in two phases viz. phase-1 covering 195 Sq.kms and phase-11 covering 89 sq. kms. The Project Proposal has been approved by Govt of India. IDCO has been selected as the Nodal Agency and IOCL selected as Anchor Tenant for development of PCPIR. The estimated budget for external infrastructure has been tentatively calculated at Rs.13634 Cr. The entire expenditure has been proposed to be borne jointly by Govt of Odisha, Government of India and Public Private Partnership.

The external infrastructure includes Green Field Coastal Corridor from Astarang to Dhamara via Paradeep ( 140Kms identified under Odisha and Andhra Pradesh PCPIR), Bhubaneswar- Paradeep Corridor(73 Kms.) , other Arterial roads, Port upgradation with new facilities, water supply, Taladanda  & Kendrapara canal lining, Captive Power Plant( 2x500MW) , New sub-stations and feeder lines, rail freight stations along with additional rail sidings, Logistic hubs near Bhutmundei, proposed air port , waste water treatment system and solid waste management. Up gradation of NH-5A ( 78 kms) to 4 lane  and expansion of Cuttack –Paradeep State High Way other important proposed  road projects. The total power requirement has been estimated at 2000 MW.

The demand of water for new projects in region will be 620 MLD  in different phases. Different water treatment systems like CETP & STP have been proposed at each of the chemical parks with estimate of 431 cr. Solid waste management system has been proposed  for disposal  industrial and domestic waste at the estimated cost of 200 Cr. Concerned departments have been directed to take up feasibility assessment and prepare detail project
reports for inclusion in state budget and recommendation to Govt of India for inclusion in 12th  Five Year Plan.

Following is from Dharitri.

Following is from http://pib.nic.in/release/release.asp?relid=68211.

The Cabinet Committee on Economic Affairs has approved the proposal of the Government of Orissa to set up a Petroleum Chemicals and Petrochemicals Investment Region (PCPIR) in Paradeep. This is the fourth PCPIR which has been approved after PCPIRs in Andhra Pradesh, Gujarat and West Bengal.

A total investment of about ` 277,734 crore is expected in the Orissa Petroleum Chemicals and Petrochemicals Investment Region (OPCPIR), which includes a committed investment of ` 29,777 crore. The proposal envisages development of physical infrastructure such as roads, rail, air links, ports, water supply, power etc. at a cost of ` 13,634 crore. The PCPIR policy prescribes that infrastructure will be created/upgraded through Public Private Partnerships to the extent possible and Central Government will provide the necessary Viability Gap Funding (VGF). Accordingly, Government of Orissa (GoO) has sought support from Government of India involving a commitment  of 716 crore on account of VGF funding for one port and three road-related projects.

The total employment generation from the OPCPIR is expected to be about 6.48 lakh persons comprising direct employment to 2.27 lakh persons.

The PCPIR policy is a window to ensure the adoption of a holistic approach to the development of global scale industrial clusters in the petroleum, chemical and petrochemical sectors in an integrated and environment friendly manner. The idea is to ensure the setting up of industrial estates in a planned manner with a view to achieve synergies and for value added manufacturing, research and development.

The Government of Orissa proposes to set up a PCPIR at Paradeep extending over parts of Kujang and Ersama blocks of Jagatsinghpur district and Mahakalpada and Marsaghai blocks of Kendrapara district.

The State Government proposes to implement the Orissa Petroleum Chemicals and Petrochemical Investment Region (OPCPIR) under the Orissa Development Authorities Act, 1982, which is an existing State law. The State Government proposes to constitute the Greater Orissa Paradeep Development Authority as the authority in charge of the development of the Paradeep PCPIR.

The delineated region has a strong industrial base with major processing activities at present including Paradeep Phosphates Ltd., IFFCO’s Fertiliser Plant, Essar Steel Plant, Goa Carbons (Paradeep Carbons Ltd), Paradeep Port etc.

Indian Oil Corporation Ltd. (IOCL) has been identified as the Anchor Tenant for the Orissa PCPIR. IOCL signed a MoU with GoO in 2004 for setting up a 15 MMTPA grassroot refinery at Paradeep in the first phase at a cost of ` 29,777 crore. The Refinery is likely to be commissioned by March 2012 and should be fully stabilized by November 2012. The Refinery will have a Crude and vacuum Distillation Unit, a Hydrocracking Unit, a Delayed Coker Unit and other secondary processing facilities. It will also have an Integrated Gassification Combined Cycle Plant for production of steam, power and hydrogen from petroleum coke for captive use in the refinery at the cost of about ` 935 crores. A petrochemical complex will be set up at a later date depending on the market conditions.

A Preliminary Environment Assessment Report (EIA) has been conducted. The State Government will carry out a detailed EIA as per the EIA notification.

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VBA/SH/LV

Following is an excerpt from a report in Pioneer.

… Balasore, which has around 70 per cent of the State’s plastic units, would soon turn into a plastic industry hub with this training centre while a plastic park is also in the offing and the work under the Industrial Up-gradation Scheme is in progress. Jena informed that Balasore is very strategically located between two upcoming Petrochemical Investment Regions at Nayachar, Haldia, and Paradip. There is potential for Balasore to be the hub of Plastics Industrial Corridor stretching on the East Coast of India.

Establishment of the APPTC at Balasore would act as a catalyst to stimulate growth of plastic industries in general and plastics processing industries in particular, he said. He said cooperation between the Centre and State is required for development.

State’s Minister of Industries and Steel and Mines Raghunath Mohanty said the APPTC’s intake for this year would be 150 and 100, respectively, for skilled and short-term courses while the full-fledged intake would be 480. The APPTC is being established by the Central Institute of Plastics Engineering and Technology (CIPET) on an area of 8 acres of land allotted by the State Government at a cost of `15 crore, which is being shared equally by the Central and State Governments.

Union Secretary of Chemicals & Petrochemicals M Raman informed that a proposal of the State Government to set up a PCPIR at Paradip has been recommended by the high-powered committee and its final approval is expected shortly. The total employment generation from the OPCPIR is expected to be about 6,48,000 persons, comprising of direct employment to 2.27 lakh and indirect employment to 4.21 lakh.

Balasore should also try to take advantage of its proximity to IIT Kharagpur.

Following are extracted from his article in Economic Times.

• The port town in Jagatsinghpur district, about 120 km from the state capital of Bhubaneswar, has already emerged as one of the country’s major investment hotspots by attracting investment in excess of Rs 3.5 lakh crore including the Rs 2, 74,134 crore Petroleum Chemicals and Petrochemical Investment Region (PCPIR) and the biggest FDI proposal by Posco to build a 12-million ton steel plant at an estimated cost of Rs 51, 000 crore.
• The port town already boasts of major fertilizer manufacturers like IFFCO and Paradeep Phosphates Limited, a brewery along with central depot of Indian Oil and other small industries like Kargil Oil, Paradeep Carbon and a host of other units.
• … an integrated Petroleum, Chemicals, and Petrochemical Investment Region (PCPIR), a Special Purpose Vehicle (SPV) promoted by the state government on the lines of Pudong in China, Rotterdam in Europe and Houston in North America.
• IOC is already coming up with 15 MMTPA grassroot refinery cum petrochemical complex five kilometer to the south of Paradeep Port at an estimated cost of Rs 25,646. For this, the state government has given incentives to IOC by exempting entry tax on crude oil and sales tax deferment for 11 years. The IOC already has got the required 3344 acres of land.
• The Railways is also committed to boost connectivity in the Paradeep region which includes the 82-km Paradeep-Haridaspur broad gauge line, being taken up at an investment of Rs 577.78 crore. East Coast Railway (ECoR) has acquired 1,146 acres of private land out of the total of 1,653 acres of land required for the project. This project being implemented by Rail Vikas Nigam Limited (RVNL) is scheduled for completion by March 2011.
• The other projects in different stages of implementation Hydrate Pellets Ltd’s six lakh tone hydrate pelts plant at Rs 10,724 crore, Essar Steel Orissa Ltd’s six million ton steel plant at Rs 10,721 cr], Deepak Fertilisers and Petrochemicals Corporation Ltd. (DFPCL’s three lakh mtpa green-field complex for Nitric Acid and Ammonium Nitrate at Paradeep at a cost of Rs 400 crore NSL Sugar Ltd’s sugar plant at Rs 800 crore and other mini projects.
  

One other thing that is not elaborated in the article is that as part of the PCPIR several things will be funded by the state government and several other things will be funded by the central government.The following is excerpted from an older article in Business Standard.

• “The Centre would provide this money in two phases. While Rs388 crore would come in the first phase of the project, the balance Rs328 crore would be provided by the Government of India in the second phase”
• … six-laning of NH-5 (A), building a greenfield coastal corridor, construction of all-new greenfield road from Bhubaneswar to Paradip and upgradation of port infrastructure.

• The six-laning of the NH-5 (A) will be taken up in the second phase of the PCPIR project at a cost of Rs76 crore. The greenfield coastal corridor will involve an expenditure of Rs410 crore out of which Rs 264 will be invested in the first phase while the remaining expenditure of Rs146 crore will be incurred in Phase-II.

• The construction of all-new greenfield road from Bhubaneswar to Paradip will be taken up at a cost of Rs190 crore while Rs40 crore would be provided by the Centre for upgradation of port infrastructure.

• Meanwhile, the Orissa government has committed an expenditure of Rs1796 crore on infrastructure development for the PCPIR hub. Out of the envisaged expenditure of Rs1796 crore, Rs 754 crore will be spent on development of arterial roads, Rs 465 crore on water supply, Rs 410 crore on power distribution and Rs136 crore on canal upgradation.

To match these industrial investments in Paradip, the Odisha government needs to make plans for a university, an engineering college and a medical college for this area. Similar plans need to made for the other upcoming industrial hubs at Angul,  Kalinganagar, Jharsuguda and Rayagada; as well as the only existing industrial area of Rourkela which neither has a medical college nor has a regular university.

Following is an excerpt from a report in Business Standard.

The Centre would provide Rs716 crore under ‘Viability Gap Funding’ for infrastructure development of the PCPIR (Petroleum, Chemicals and Petrochemicals Investment Region) hub to be set up at Paradip in Orissa.

“The Centre would provide this money in two phases. While Rs388 crore would come in the first phase of the project, the balance Rs328 crore would be provided by the Government of India in the second phase”, an official source told Business Standard.

The funds to be provided by the Centre under ‘Viability Gap Funding’, will be utilized for various infrastructure projects of the PCPI hub like six-laning of NH-5 (A), building a greenfield coastal corridor, construction of all-new greenfield road from Bhubaneswar to Paradip \and upgradation of port infrastructure.

The six-laning of the NH-5 (A) will be taken up in the second phase of the PCPIR project at a cost of Rs76 crore. The greenfield coastal corridor will involve an expenditure of Rs410 crore out of which Rs 264 will be invested in the first phase while the remaining expenditure of Rs146 crore will be incurred in Phase-II.

The construction of all-new greenfield road from Bhubaneswar to Paradip will be taken up at a cost of Rs190 crore while Rs40 crore would be provided by the Centre for upgradation of port infrastructure.

Meanwhile, the Orissa government has committed an expenditure of Rs1796 crore on infrastructure development for the PCPIR hub. Out of the envisaged expenditure of Rs1796 crore, Rs 754 crore will be spent on development of arterial roads, Rs 465 crore on water supply, Rs 410 crore on power distribution and Rs136 crore on canal upgradation.

The PCPIR project in the state would be set up on 284.15 sq km (70,214 acres) of land spread over Jagatsnghpur and Kendrapara districts. The PCPIR hub is expected to attract investments to the tune of Rs2.74 lakh crore.

Phase-I work of the project is expected to be completed by 2015 while the entire project is scheduled for commissioning by 2030.

Of the expected overall investment figure of Rs2.74 lakh crore, the lion’s share would come from the petroleum and petrochemicals sectors at Rs2.3 lakh crore followed by housing and allied infrastructure at Rs23,500 crore, external infrastructure at Rs13,634 crore and Rs3,500 crore each for chemicals & fertilizers and ancillary sectors.

The mega project is set to create employment for 6.48 lakh people which includes direct employment for 2.27 lakh people and indirect employment for 4.41 lakh others.

The turnover of this PCPIR hub is estimated at Rs4.23 lakh crore with an export potential of Rs 43,000 crore. The PCPIR hub is expected to generate taxes to the tune of Rs 42,000 crore and contribute six per cent to Orissa’s Gross Domestic Product (GDP).

… This refinery cum petrochemical complex which needs 3300 acres of land, is scheduled for commissioning by March 2012.

The land acquisition process for PCPIR is on the fast track with the state owned Industrial Infrastructure Development Corporation of Orissa (Idco), the nodal agency for the project having filed requisition for 90 per cent of the total land requirement in .

This is really great. Especially, the part about a greenfield coastal road.  Odisha has been demanding such a road for a long time. I think eventually it will run all the way from Dhamara-Paradeep-Astaranga-Konark-Puri-Baliharchandi-across Chilika to Gopalpur. From Dhamara to the North they can put this road together with the National Waterway.

Update: Financial Express also reports on it. Following are some excerpts.

The PCPIR project in the state will be the fourth project in the country after West Bengal, Andhra Pradesh and Gujarat.The central government will provide rail connectivity, highway network and airports while the state government will provide the basic infrastructure, including power and water supply, said IDCO chairman, Priyabrata Patnaik.

This is huge. Rs 2.74 lakh crore is about $60 billion. Following is from a report in Business Standard.

Region spread over 284.15 sq Km to attract investment of Rs 2.74 lakh crore.

The Cabinet Committee on Economic Affairs (CCEA) today finally gave the green signal to the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) project in Orissa proposed to be set up near Paradip.

"There was a meeting in New Dehi on the PCPIR project of Orissa and the CCEA has approved the proposal”, state industries secretary Saurabh Garg told Business Standard over the phone from New Delhi.

Orissa has become the fourth state after Andhra Pradesh, Gujarat and West Bengal to have got the Centre’s nod for this prestigious project.

The PCPIR project in the state would be set up on 284.15 sq km (70,214 acres) of land spread over Jagatsnghpur and Kendrapara districts. The PCPIR hub is expected to attract investments to the tune of Rs 2.74 lakh crore.

Phase-I work of the project is expected to be completed by 2015 while the entire project is scheduled for commissioning by 2030. The Orissa government would invest Rs 1796 crore on infrastructure development for the project.

Of the expected overall investment figure of Rs 2.74 lakh crore, the lion’s share would come from the petroleum and petrochemicals sectors at Rs 2.3 lakh crore followed by housing and allied infrastructure at Rs 23,500 crore, external infrastructure at Rs 13,634 crore and Rs 3,500 crore each for chemicals & fertilizers and ancillary sectors.

The mega project is set to create employment for 6.48 lakh people which includes direct employment for 2.27 lakh people and indirect employment for 4.41 lakh others.

The turnover of this PCPIR hub is estimated at Rs 4.23 lakh crore with an export potential of Rs 43,000 crore. The PCPIR hub is expected to generate taxes to the tune of Rs 42,000 crore and contribute six per cent to Orissa’s Gross Domestic Product (GDP).

Indian Oil Corporation Ltd, which will be the anchor tenant of the region, will set up a 15 million tonne per annum grassroot refinery cum petrochemical complex five km south of Paradip at a cost of Rs 29,777 crore.

This refinery cum petrochemical complex, which needs 3300 acres of land, is scheduled for commissioning by March 2012.The land acquisition process for PCPIR is on the fast track with the state owned Industrial Infrastructure Development Corporation of Orissa (Idco), the nodal agency for the project having filed requisition for 90 per cent of the total land requirement in Phase-I.The Phase-I of the PCPIR project needs 48,268 acres (195.34 sq km) in all out of which 22,232 acres (89.97 sq km) would be devoted to processing facilities while the balance 26035 acres ( 105.37 sq km) is the area set aside for non-processing facilities. Phase-I of the project is scheduled to be taken up during 2010-2020.

The entire project which is set to be completed by 2030, needs 70,214 acres (284.15 sq km) of land which includes 30,397 acres (123.01 sq km) of processing area and 39.817 acres (161.14 sq km) of non-processing area.

Out of the processing area of 123.01 sq km, 41.95 sq km is under operational units and almost 42.68 sq km (10,546.22 acres) has been acquired or is under acquisition by Idco and the balance area of 38.38 sq km needs to be acquired.

Idco has filed for land acquisition of 7,342 acres (30 sq km) for common infrastructure, utilities and accommodating downstream chemical converters and industries.

Following is an excerpt from a report in Business Standard.

The Phase-I of the PCPIR project needs 48,268 acres (195.34 sq km) in all out of which 22,232 acres (89.97 sq km) would be devoted to processing facilities while the balance 26035 acres ( 105.37 sq km) is the area set aside for non-processing facilities. Phase-I of the project is scheduled to be taken up during 2010-2020.

The entire project which is set to be completed by 2030, needs 70,214 acres (284.15 sq km) of land which includes 30,397 acres (123.01 sq km) of processing area and 39.817 acres (161.14 sq km) of non-processing area.

Priyabrata Pattnaik, chairman and managing director of Idco said, “Idco has filed requisition for acquisition of 90 per cent of land needed for the first phase of the PCPIR project. Out of the processing area of 123.01 sq km, 41.95 sq km is under operational units and almost 42.68 sq km (10,546.22 acres) has been acquired or is under acquisition by Idco, balance area of 38.38 sq km needs to be acquired.”

He was speaking at an awareness session on ‘Regulatory Framework of Petroleum and Natural Gas Regulatory Board (PNGRB) for Petroleum and Natural Gas Sector’, organized by the Confederation of Indian Industry (CII).

Of the non-processing area of 161.14 sq km, 20.92 sq km (5169.33 acres) are village settlements which has been integrated in the non-processing area and existing township of 19.08 sq km ( 4714.66 acres) included in the non – processing area.

Idco has also filed for land acquisition of 7,342 acres (30 sq km) for common infrastructure, utilities and accommodating downstream chemical converters and industries.

Meanwhile, as a part of developing rail connectivity within the PCPIR hub, it has been decided to set up rail freight stations (RFS) along with additional rail sidings at a total cost of Rs 80 crore in Phase-I and Rs 120 crore in Phase-II.

In Phase I, the RFS will be along Cuttack-Paradeep line which further connects to Paradeep port and Chennai-Howrah trunk whereas in Phase II, the RFS will be along Paradeep-Haridaspur line joining Chennai-Howrah trunk. The PCPIR project at Paradip is awaiting the in-principle approval of the Cabinet Committee on Economic Affairs (CCEA). After Andhra Pradesh, Gujarat and West Bengal, Orissa would be the fourth state to receive the approval for this prestigious project.

Indian Oil Corporation Ltd (IOCL) would be the anchor tenant of the project and it would set up a 15 million tonne per annum grassroot refinery cum petrochemical complex five km south of Paradip at a cost of Rs 29,777 crore. The refinery project is expected to be commissioned by March 2012 and stabilized by November 2012.

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 livemint.

… Bharat Biotech International Ltd, a producer of vaccines and biotherapeutics announced that the Orissa government has selected the company as the developer for its ‘Biotech-Pharma-IT Park’ project under public-private-partnership (PPP) mode.

The proposed industrial park is coming up on a 54.86 acre land located at Mouza-Andharua in Bhubaneswar.

BBIL will promote a Special Purpose Vehicle (SPV) to undertake the integrated industrial park. The project is estimated to cost Rs100 crore and is slated to be complete in eight years, a press release issued here stated.

“Our task is to focus on rapid development of this park by developing core infrastructure and technology to enable establishment of new companies whereby new local entrepreneurs in the biotechnology field will be created,” BBIL Chairman and Managing Director Krishna Ella said in the release.

About 10 acre land, within the park, is earmarked for development of biotechnology incubation centre, which will be funded by Department of Biotechnology, Government of India, for the equipment or instrumentation.

A formal lease-cum-development agreement will be signed between the SPV and Orissa Industrial Infrastructure Development Corporation (IDCO).

The Orissa government and IDCO, in principle, have agreed to provide all the external infrastructure facilities like power supply, water supply among others, the release added.

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.