CM moots panel to expedite Kakinada petrochemical project

Amaravati: A day after the visit of Union Minister for Petroleum and Natural Gas Dharmendra Pradhan to the state, Chief Minister Y S Jagan Mohan Reddy has decided to constitute a joint committee to resolve the pending issues and see that the petrochemical project becomes a reality. The project expected to come up at Kakinada is estimated to cost about Rs 40,000 crore.

Speaking to The Hans India, Principal Secretary (Industries and Ports) Rajat Bhargav said the project would become a reality next year. The proposed joint committee of both the State and Centre would include the Minister for Industries in the state government, Secretaries from the department, other stakeholders like HPCL, GAIL, etc.

The Petrochemical Complex will come up in the petroleum, chemicals and petrochemicals investment region (PCPIR), between Kakinada and Vizag. In the previous government, it was estimated that the Viability Gap Funding for the project was roughly Rs 5,000 crore, which would be borne by the State government.

Now, this amount has been reduced by Rs 1000 crore, because of the reduction in corporate tax and certain subsidies for this project, added Bhargav. He said that an airport may also come up at Kakinada. The seaport will also be developed here, he added.