Preparation of Master Plan and Zonal Plans for Paradeep PCPIR, Odisha
INCEPTION REPORT
Chapter 1. Introduction
1.1 Introduction
The Government of India launched a Policy Resolution for Promotion of Petroleum, Chemicals and
Petrochemical Investment Regions (PCPIRs) in May 2007 with the objective to promote investment and make
India an important hub for both domestic and international markets in chemical and petrochemical sectors.
Under this policy, integrated Petroleum, Chemicals and Petrochemical Investment Regions (PCPIRs) may be set
up. The PCPIRs would reap the benefits of co-siting, networking and greater efficiency through the use of
common infrastructure and support services. They would have high-class infrastructure, and provide a
competitive environment conducive for setting up businesses. They would thus result in a boost to
manufacturing, augmentation of exports and generation of employment.
1.2 PCPIR Policy
The PCPIR policy has provided an overall concept guideline and has laid few specifications on the minimum
standards required for setting up PCPIRs. Some of the key policy tenets proposed is as follows:
A Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) would be a specifically
delineated investment region with an area of around 250 square kilometers planned for the
establishment of manufacturing facilities for domestic and export led production in petroleum,
chemicals & petrochemicals, along with the associated services and infrastructure.
A PCPIR would be a combination of production units, public utilities, logistics, environmental
protection mechanisms, residential areas and administrative services. It would have a processing
area, where the manufacturing facilities, along with associated logistics and other services, and
required infrastructure will be located, and a non-processing area, to include residential, commercial
and other social and institutional infrastructure. The minimum processing area for the PCPIR will be
about 40% of the total designated area, i.e., around 100 sq km. The processing area may or may not
be contiguous.
The PCPIR may include one or more Special Economic Zones, Industrial Parks, Free Trade &
Warehousing Zones, Export Oriented Units, or Growth Centres, duly notified under the relevant
Central or state legislation or policy. All the benefits available under the relevant legislation or policy
will continue to remain available to the said Zones or Parks, as the case may be, forming part of the
PCPIR.
The PCPIR could cover existing settlements/industries & estates/services and would therefore benefit
from and be complementary to the region. The concerned state government may not acquire the
entire area comprising the PCPIR, but it will notify the same under the relevant Act for proper
planning and zoning to ensure coordinated development.
Each PCPIR would have a refinery/ petrochemical feedstock company as an anchor tenant. The
internal infrastructure of the PCPIR will be built and managed by a Developer, or a group of Co-
developers. The external linkages will be provided by Government of India and the concerned state
government. The users of external as well as internal infrastructure will pay for its use, except to the
extent that the government supports the service through budgetary resources.
Additionally the policy outlines the role of the Central Government and State Government in terms of
budgetary provisions and institutional framework apart from other fundamental guidelines.
The role of Central Government includes:
Expeditious approval of PCPIR proposals
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Preparation of Master Plan and Zonal Plans for Paradeep PCPIR, Odisha
INCEPTION REPORT
Ensure availability of external physical infrastructure linkages to the PCPIR like road (national
highways), rail, ports, airport, telecom, etc. Central Government will provide the necessary VGF
through existing schemes.
Make budgetary provision, where required, for these linkages
Dissemination of information to promote domestic and global investments in the PCPIRs
Regulate functions governed by various central laws including environmental clearance
The role of the State Government includes:
To identify a suitable site, prepare the proposal, seek approval and notify the area
To ensure all physical infrastructure and utilities linkages such as: Power connectivity, Provision of
bulk requirement of water, Road connectivity (State Roads), Sewerage & Effluent Treatment Linkages,
Appropriate infrastructure to address Health, Safety and Environmental concerns
Can also give additional package of incentives for development of the PCPIR
The section above gives only the highlights of the PCPIR Policy. For the complete text of the Policy Refer
Annexure A.
1.3 Paradeep PCPIR Project Background
Under the Govt. of India’s PCPIR Policy, Government of Odisha (GoO) proposes to set up a Petroleum,
Chemical and Petrochemical Investment Region (PCPIR) encompassing parts of Jagatsinghpur and Kendrapara
districts. The State Government has also secured the consent of the Indian Oil Corporation Limited (IOCL) to be
the anchor tenant for the proposed PCPIR. The In-Principle approval has been obtained by GoO from the
Ministry of Chemicals & Fertilizers, GoI for the establishment of PCPIR in Paradeep. Some of the key
advantages of locating the PCPIR in Paradeep include:
Existing petrochemical hub with IFFCO-Fertilizer unit, Paradeep Phosphates Limited, Paradeep
Carbons Limited (Goa Carbons), Coal to Liquid Project (M/s SASOL & M/s Tata Steel), IOCL plant, etc.
Feedstock sourcing and sea connectivity
o Proximity to Refinery-cum-Petrochemical Complex, the anchor project of IOCL, proposed as the
feedstock source for downstream units
o Proximity to Paradeep Port and potential proximity to upcoming Dhamra Port and proposed
Astranga Port
Hinterland connectivity
o Proximity to NH-5A: Connectivity to Golden Quadrilateral
o Proximity to SH-12: Connectivity to Bhubaneswar-Cuttack Metropolitan Region
o Proximity to Cuttack-Paradeep and Haridaspur-Paradeep links of East Coast Railway which
connects to Chennai-Howrah Trunk Line
o Biju Patnaik Airport at Bhubaneswar: proposed to be upgraded to international airport and
Greenfield airport proposed in the region
Proximity to water sources in the region: Taladanda and Kendrapara Canals
Land availability
Proximity to coast for marine disposal of treated effluents
Proximity to Central Institute of Plastics Engineering and Technology (CIPET) at Bhubaneswar.
Proximity to urban centres of Paradeep and Bhubaneswar-Cuttack Metropolitan Region
GoO has designated the Odisha Industrial Infrastructure Development Corporation (IDCO) as the nodal agency
for setting up the PCPIR. The project proposal/application for CCEA notification was prepared by IDCO and
submitted along with Department of Industries, GoO to the Ministry in September 2010 for obtaining Final
Approval from the Ministry and for notification of the Paradeep PCPIR under the legal statute of the State.
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Preparation of Master Plan and Zonal Plans for Paradeep PCPIR, Odisha
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As per the Press release by Ministry of Chemicals and fertilizers, GoI; the GoI has approved setting up four
Petroleum, Chemicals and Petrochemical Investment Regions in the States of Andhra Pradesh, Gujarat, Odisha
and Tamil Nadu. These PCPIRs are at different stages of implementation.
Table 1.1: PCPIRs Approved by GoI
SI. No. State Name of PCPIR
1 Andhra Pradesh Vishakhapatnam – Kakinada
2 Gujarat Dahej
3 Tamil Nadu Cuddalore – Nagapattinam
4 Odisha Paradeep
Source: Ministry of Chemicals and Fertilizers, GoI, 2015
The Department of Industries, GoO submitted the application (Project Proposal) document for the
development of PCPIR in Paradeep, Odisha to the Department of Chemicals and Petrochemicals, GoI in 2010.
Government of Odisha has thus obtained the In-Principle approval from the Ministry of Chemicals & Fertilizers,
Government of India for establishment of PCPIR at Jagatsinghpur and Kendrapara districts of Odisha. Further, a
SPV named Paradeep Investment Region Development Limited has been formed for development of PCPIR
under the Companies Act, 1956 from March 3, 2007 which is fully owned by IDCO.
IDCO has appointed M/s Feedback Infra Pvt. Ltd as consultant for preparation of Master Plan and Zonal Plans
for PCPIR to be developed in Paradeep in Odisha. The total assignment is divided into two parts: Master Plan
and Zonal Plans; to be completed in 18 months.
1.4 Aim and Objective
The aim and objectives outlined for the assignment are as follows:-
To prepare a Master Plan and Zonal Plans for the Paradeep PCPIR in reference to the Odisha
Development Authorities Act, 1982 while taking advantage of policy and legislation laid down by GoI
and State Government for PCPIRs.
To develop a self-sustained region with processing area supported by adequate non-processing area.
The PCPIR is proposed to have 43% of processing area along with 57% of non-processing area.
1.5 Scope of Assignment
The scope of the assignment is as follows:
Market Survey and Demand Assessment
Carry out a macro-economic review of region
Assess regional and locational strengths and constraints and analyzing the investment climate with
respect to existing resources and potential sectors that would influence the successful development of the
proposed project
Identify parameters that influence attractiveness of the proposed project and critical evaluation of the
same to derive key drivers for enabling realization of project goals
Analyze in detail the resources base of the region in terms of natural resources, minerals etc.
Undertake opportunity assessment at global, national, and regional level in terms of output, FDI, growth,
employment, investment trends, sector dynamics, infrastructure availability, technology and manpower
availability etc.
Analyze future development prospects, identify target sectors/ markets based on the competitive and
comparative advantages to enhance the pace of economic development, promote exports and ensure
balanced development.
Identify the potential companies at global and national level that could exploit the identified resources
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Preparation of Master Plan and Zonal Plans for Paradeep PCPIR, Odisha
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Assess/ estimate the likely space demand from the identified target companies for space within the
project and suggest a practical zone space marketing plan based on the estimates of demand.
Review of Existing Policies, Strategies and Plans
The consultant shall review the existing zoning ordinances, comprehensive development plans and
other relevant plans and programs including any existing or future plans or projects that shall impact
development of the project
The consultant shall analyse the regulatory and policy scenario and institutional mechanism along
with the incentive offered by the Central/ State governments. The consultant shall identify
Policy incentives available as per Central and State government policies for applicable
industries
Provisions under State level labour laws
Provisions under State Environmental laws
Provisions under other relevant State level laws
Survey activities and Base Map preparation
Detailed traffic surveys of the entire section of the road including:
Classified volume counts and PCUs of locations near intersections and junctions
Origin – Destination and Commodity Movement Characteristics
Intersection volume counts
Speed – Delay Characteristics
Project Road Section
Road condition and inventory survey
Bridge condition and inventory survey
Physical infrastructure mapping
Water supply system mapping
Existing water resources in the project region
Sewerage System Mapping
Power System Mapping
Solid Waste Management System Mapping
Stakeholders’ Consultation (documentation has to be done with photographs and recorded minutes
of the meeting along with analysis and findings)
Village community
District level
Workshops at PCPIR
The consultant shall undertake the base map preparation
Digitalization of geo-referenced revenue village maps, revenue boundaries with survey nos
bringing them to uniform scale, i.e, 1:10,000 for master plan and 1:5000 for Zonal Plan
The available digitized village revenue maps and satellite images along with GIS based maps
shall be shared by IDCO with the Consultant.
Assessment of Industrial and Commercial potential
The consultant shall undertake detailed discussions with various stakeholders (Regional, National and
Global players) – manufacturers, infrastructure providers, financial institutions, Central/ State
Government Agencies, etc. for identifying their concerns and expectations.
The Consultant should identify industries that may be developed along with demand analysis and
estimated phasing of land off-take by industries and associated sectors.
The Consultant should estimate the Total Investment and Turnover of the Manufacturing Industry.
The Consultant should assess the Industrial Production / Output for all the targeted industries that are
envisaged to be located in the Industrial Zone.
The estimates should be based on relevant economic techniques used for projections.
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Preparation of Master Plan and Zonal Plans for Paradeep PCPIR, Odisha
INCEPTION REPORT
The Consultant should assess Export Oriented Industries which can be located in the Industrial Area.
Consultant shall estimate likely export potential and investment at the proposed site with respect to
target industry sectors/activities.
The Consultant shall identify the Human Resource Availability in the PCPIR region
The Consultant shall estimate the build-up of skill-force requirement and likely Employment Potential
with the development of the Industrial Area both direct and indirect.
Project Component mix
Based on the outcome of the demand assessment and future growth pattern, the consultant shall evolve a
suitable Product/Activity mix for the developable land and assess likely investment potential to activate local
commerce and enhance investments. This shall include:
Space allocation for different categories of industries/ business establishments within the project site
and the ancillary activities, if required/feasible;
Area for Specialized Infrastructure as per specific requirements of proposed activities
Residential & Social Infrastructure
Commercial and retail activity
Institutional area - conference facilities, training center etc.
Other Support facilities required as per finalized products mix and prevailing trends.
Conceptual Master plan
The Consultant shall prepare at least 2 (TWO) Alternative Conceptual Master Plans for the proposed
project defining the future development zones with allocation of area for each component of the
suggested activity mix, proposed measures for augmentation of external linkages to the project, for
physical and social infrastructure, protected zones and rehabilitation areas etc.
The Consultants shall evolve the areas for each activity/component like industrial, residential,
public/semi-public, transportation, green areas, utilities, etc. based on accepted international
standards, proposed measures for augmentation of external linkages, for physical and social
infrastructure, protected zones and rehabilitation areas etc. The Concept Plan should be prepared
such that the PCPIR will be a self-sustaining node with all infrastructure facilities.
The Consultant shall estimate the total population for the project based on direct and indirect
employment and then the total land area required for the region based on appropriate density
standards. While doing this the consultant shall explore alternative urban forms e.g. compact, dense
development vis-a-vis lower density, spread-out development, etc., illustrate their merits & demerits
and workout the land requirement for each alternative. The consultant's analysis should be justified
through credible norms and basis from best practices from domestic/international examples. Based
on the concept plan alternatives the State Government shall select the optimal/best option.
Based on the approved concept plan the consultant will devise a phasing strategy. It is expected that
development of envisaged facilities in each phase will make the PCPIR self-sustainable with provision
for expansion and integration in the future. The Consultant is also expected to keep in view the
results of market assessment study while devising the phasing strategy. The conceptual master plan
should clearly show allocated area for each component of the suggested activity mix, proposed
measures for augmentation of external linkages.
The Concept Plan should also include strategy & suitable measures for ensuring economic,
commercial and aesthetic value. Discussing the advantages/disadvantages of alternatives and
suggesting the preferred conceptual master plan.
External Infrastructure planning
The Consultant shall identify the water source and propose the conveyance system of water from
nearest source to the site.
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