Preparation of Master Plan and Zonal Plans for
Paradeep PCPIR, Odisha
Inception Report
June 2016
Odisha Industrial Infrastructure Feedback Infra Pvt. Ltd. In JV
Development Corporation with B.E. Consultants
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
Page 1