Consortium to invest in Andhra Pradesh hub

A cabinet secretary-chaired panel in New Delhi cleared the first mega oil, chemical and petrochemical investment hub, which is expected to attract an investment of Rs343,000 crore (US$80.03 billion). Mittal Energy Investments, Total SA of France and oil refining and marketing major Hindustan Petroleum Corp. (HPCL) plan to invest Rs32,000 crore (US$7.47 billion) 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 to give it the final go-ahead before the companies start construction work. The state government plans to complete the process by notifying the 603-sq km area as the petroleum, chemical and petrochemical hub. The investment is expected to change the face of the southern state with anticipated exports of Rs58,000 crore (US$13.53 billion) a year, tax receipts of Rs46,500 crore (US$10.85 billion) a year and creation of 12 lakh (1.2 million) jobs. (May 20, 2008)