Andhra Pradesh in terms of Viability Gap funding for the viability of the project.

 

New Delhi (prajaamaravati);

In line with the provisions of Section 93(4) of AP Reorganisation Act, 2014, IOC or HPCL shall, within six months from the appointed day, examine the feasibility of establishing a greenfield crude oil refinery and petrochemical complex in the successor State of Andhra Pradesh and take an expeditious decision thereon.

Accordingly feasibility for establishing 1MMTPA cracker complex at Kakinada with an investment of Rs.32,900 Cr by the consortium HPCL-GAIL has been carried out and sought the support of Government of Andhra Pradesh in terms of Viability Gap funding for the viability of the project.

Given the fact that the Government of India has reduced the Corporate Tax and interest rates have also come down globally including India, the Cracker & Petroleum complex project would perhaps become viable without any viability Gap funding. As such, the Hon’ble Chief Minister, Sri Y S Jagan Mohan Reddy garu met the Hon’ble Union Minister for Petroleum, Natural Gas and Steel, Shri Dharmendra Pradhan garu on 10.06.2021 and requested for the support of GoI in taking forward the strategic project without Viability Gap support, as this project will go a long way in fulfilling the commitment of Government of India under the AP Reorganisation Act, 2014 and will place the state in a strong position to contribute to Hon’ble Prime Minister’s vision of $ 5 Trillion Economy by 2024, as being an Anchor unit to PCPIR. The Hon’ble Union Minister for Petroleum, Natural Gas, and Steel responded positively and promised to extend all support in taking forward the project.

As a part of this, Sri Mekapati Gautham Reddy Garu, Sri Aditya Nath Das Garu, IAS, Chief Secretary to Government of Andhra Pradesh and Sri R.Karikal Valaven Garu, IAS., Special Chief Secretary to Government, Industries and Commerce Department, Government of Andhra Pradesh, met with the Union Minister for Petroleum, Natural Gas and Steel Shri Dharmendra Pradhan and Sri Tarun Kapoor, IAS, Secretary, Ministry of Petroleum and Natural Gas, Government of  India on 16.06.2021 and had detailed discussion on Establishment of Petrochemical Cracker Complex in Andhra Pradesh by HPCL-GAIL consortium, given the recent regulatory changes.

As a result of the discussions, a working group has been constituted under the Chairmanship of Joint Secretary (Refineries), Ministry of Petroleum and Natural Gas, Government of India with the GoAP officials. Engineers India Limited and SBI Caps are advised to re-work the financials in view of the recent regulatory changes in Corporate Tax and Interest Rates to take forward the Strategic Project in Andhra Pradesh.