Saturday, June 7, 2008
AP neglecting Kakinada old port >> Barge owners
Wednesday, Jun 04, 2008Kakinada, June 3 The State Government, which promised at the time of the construction of the new deepwater port that the old port and those dependent on it would be protected, is grossly neglecting the anchorage port and encouraging the new one, the Kakinada Barge Owners’ Welfare Association has alleged.
At a press meet here on Tuesday, Dr B. Ramamurthy, President of the association, said that more than 10,000 workers were dependent on the old port directly or indirectly and therefore due importance should be given to the infrastructure at the port. Instead of allocating enough funds for the purpose and improving facilities at the anchorage, he alleged that the State was imposing unreasonable restrictions.
Recently, he said, 11 out of the existing 26 jetties were denotified by the customs authorities on security grounds and as a result cargo-handling at the anchorage was badly affected. He said the C&F (carrying and forwarding) agents were using the barges as storage godowns by delaying the discharge of cargo like urea, causing congestion at jetties. The port authorities were therefore restricting the number of ships being handled at the anchorage.
The barge owners had agreed to increase the tonnage up to 600 tonnes a barge from the present 350, but the State was not agreeable to it.
PCPIR project gains momentum
| IFC examining feasibility of various coastal roads |
KAKINADA: The Petroleum, Chemical and Petrochemical Investment Region (PCPIR) project proposed to be developed between Visakhapatnam and Kakinada, is gaining momentum with the feasibility of various coastal roads being examined by the International Finance Corporation (IFC).
Mammoth ventureThe IFC, which was recently appointed advisor of Infrastructure Corporation of Andhra Pradesh (INCAP) for the specific purpose of forging public-private partnerships for the project, is working out modalities of developing a combination of new and existing roads and connecting radial roads in the hinterland as a start-up to the State Government’s mammoth venture.
Prominent among the proposals is the road that links the seaports at Kakinada and Gangavaram in Visakhapatnam district (distance 138 km). It will be a six-lane road between Gangavaram port and Kakinada, which was originally estimated to cost Rs 1,937 crore.
A vast chunk of the expenditure is proposed to be borne by the Union Government in two phases.
Other PCPIR roads are: upgrading of State highways- No. 39 (Visakhapatnam - Anantagiri - Araku), No. 40 Kakinada - Rajahmundry via Samalkot, Bikkavolu, Anaparthi and Kadiam and No. 97 Yelamanchili - Gajuwaka, NH-214 [(Kathipudi - Razole - Kakinada - Narasapur - Pamarru (Krishna district)] and NH-214A [Digamarru (West Godavari district) - Narasapur - Machilipatnam - Challapalli - Avanigadda - Repalle - Bapatla - Chirala - Ongole].
Expanding the ADB Road (Kakinada port - NH-5) to four lanes and developing Kakinada bypass road are the other important components of the coastal road network which is an integral part of the PCPIR.
M/s Reliance Industries is in advanced stages of laying a link road in the PPP mode from Tallarevu to Gadimoga village, about 30 km from Kakinada, where it is constructing an on-shore terminal to receive gas extracted from the K-G basin.
The Vizag-Kakinada PCPIR is proposed to be developed in 250 sq. km (approximately 62,000 acres), comprising manufacturing facilities for the petrochemical industries, other logistical infrastructure and administrative and residential areas.
The PCPIR project also includes upgrading of Visakhapatnam and Rajahmundry airports, Visakhapatnam port and Kakinada deep water port, ‘logistic hubs’ containing inland container depots, container freight stations and warehouses, captive power plants and water supply schemes.
Another major component of PCPIR is the proposed refinery of Oil and Natural Gas Corporation Limited having a revised capacity of 15 mtpa and costing nearly Rs 25,000 crore. This project is still in the conceptual stage.
AP Coastal Corridor project gets in-principle nod from Centre
Hyderabad, May 29 The Union Government has agreed to support the Coastal Corridor project covering the districts of Srikakulam, Vizianagaram, Visakhapatnam and East Godavari District in the State.
“Officials from the Union Government were keen to know about the proposed Coastal Corridor such as the basic infrastructure, industries that are likely to come up in the region and connectivity issues and after our presentation, they gave an in-principle approval to the project,” Mr B Sam Bob, Principal Secretary, Industries and Commerce Department, Government of Andhra Pradesh, told Business Line. According to him, the Government will now look to develop a four or six-lane road parallel to the existing National Highway to support the port-based industries.
According to the initial plan, the Andhra Pradesh Government is looking at developing the 30-km road from Visakhapatnam to Gangavaram Port.
“The total distance that has been identified is 138 km, but we have been asked implement it in a phased manner. So, that is why, in the first phase, we are looking at completing the road from Visakhapatnam to Gangavaram port in the next two years,” Mr Bob said.
The total cost of the project, though not yet finalised, is estimated to be around Rs 5,500 crore and in the first phase, around Rs 1,100 crore has to be invested.
Mega hubs to change face of Industrial Landscape
With a focus on infrastructure, Andhra Pradesh, Gujarat, Karnataka, West Bengal, Orissa and Tamil Nadu are creating investment hubs that have the potential to collectively attract Rs 10 lakh crore in investments and create 43 lakh jobs in the next several years. Each of these investment hubs that span several hundreds of square kilometres will have urban utilities like housing complexes, cinema halls, schools and hospitals and major industries in oil, chemicals, petrochemicals and several downstream industries in their heart. The investments into external infrastructure like roads, sea ports, airports and railnetwork would be made by the union government while power to these massive industries would be provided by the state government.
Besides their own investments into utilities like hospitals and schools, the state governments will also strike partnership deals with builders and other private players to set up housing complexes and other facilities.
Industrial investments would come from state-run and private firms — domestic as well as global. Chemicals and fertilisers minister Paswan, whose ministry conceptualised these massive investment hubs, said that the first PCPIR is likely to come up in Andhra Pradesh, followed by one in Gujarat. Sources said the ambitious investment hub in Andhra Pradesh is likely to be notified in a couple of months.
In the 603.6 sq km petroleum, chemical and petrochemical investment region (PCPIR) traversing the Visakhapatnam-Kakinada region in Andhra Pradesh, the central government would pump in about Rs 5,974 crore to build roads, rail links, rail freight stations, airports and cargo complexes while the state would spend Rs 2,132 crore to provide mainly water and power supply, it is understood. A larger chunk of infrastructure investment of Rs 10,565 crore would come from private investors, as per the proposal the state government has prepared, it is learned.
Gujarat is expected to invest Rs 18,691 crore in infrastructure — including funds from central government and private players. Karnataka, which is creating a PCPIR in 250 sq km and anticipating an industrial investment of Rs 2.3 lakh crore, will spend Rs 10,147 crore in infrastructure. This includes contribution from the central government and private developers. Orissa, which will create a 284 sq km PCPIR, will get infrastructure investments of about Rs 15,273 crore from all the three sources. The Left-ruled West Bengal will have a total infrastructure investment of about Rs 25,750 crore, while Tamil Nadu will pump in Rs 6,189 crore.
The Andhra Pradesh PCPIR has the potential for industrial investments of Rs 3,43,000 crore while Gujarat has an investment commitment from private players as well as central and state governments of Rs 50,000 crore. The West Bengal PCPIR has the potential to attract industrial investment of about Rs 80,000 crore and the one proposed in Tamil Nadu has the potential for Rs 24,178 crore.
In Andhra Pradesh, global majors like Total SA of France, Mittal Energy Investments, GAIL India, Oil India and oil refining and marketing major Hindustan Petroleum Corp (HPCL) are expected to invest Rs 32,000 crore. This consortium will set up a 15 million tonnes a year (mtpa) refining-cum-petrochemical complex. Besides this, HPCL is expected invest another Rs 10,000 crore to double its existing 7.5 mtpa refining capacity in the region.
Public sector refining major Oil & Natural Gas Corp (ONGC) would invest Rs 31,000 crore to set up a refinery and polypropylene unit in Kakinada SEZ. The state government anticipates exports of Rs 58,000 crore a year and tax receipts of Rs 46,500 crore a year from this PCPIR, which is expected to account for 9% of the total value of goods and services produced in the state.
Creating sophisticated infrastructure across the country to facilitate industrial development may take time. The government’s idea, therefore, is to select regions in the coastal area, where port connectivity could be provided easily to such industrial hubs in addition to upgradation of other modes of transport. Removing the need for multiple clearances and providing infrastructure would remove the two major hurdles for industrial development.
The states that have moved PCPIR proposals have to create bodies similar to Noida set up by the Uttar Pradesh government, the final administrative step before investments could come in. The ministry of environment and forests is also understood to be working with the pollution control boards in these six states to ensure that environmental disturbance because of large scale industrialisation is kept to a minimum.
To give a big boost to India’s $8.8-billion petrochem industry, the government also came out with a policy that aims at encouraging local production, consumption and export of petrochemicals and plastics. Neighbouring China has a strong presence in plastics and enjoys a substantial share of the global footwear and toys market.
The government intends to promote use of plastics in areas like agriculture storage and water conveyance, and facilitate research on waste management technologies. The policy envisages steps to attract more investments in the sector and to enable the country to capture a larger slice of the Asian demand for polymers. To achieve this goal, the government would strive to provide natural gas — the feedstock — at globally competitive prices, create infrastructure and further rationalise tariffs and taxes.
The government also intends to assist modernising the downstream plastic processing industry to enhance its capacity and competitiveness. By 2011, the per capita consumption of plastic products and synthetic fibre is expected go up three-fold from the current 4 kg and 1.6 kg, respectively. A petrochemical technology upgradation fund, a plastic development council and a task force on petrochemical feedstock to suggest measures to ensure the availability of petrochemical feedstock at internationally competitive prices are in the making.
Source: Economic Times
పోర్టుభూముల కేటాయింపుపై ఆందోళన
కాకినాడ పోర్టుభూములు అక్రమ కేటాయింపులపై పార్టీ తరపున ఆందోళన చేపడతామని యనమల రామకృష్ణుడు స్పష్టం చేశారు. బుధవారం 'ఈనాడు'లో 'అడ్రస్లేని కంపెనీలు' శీర్షికన ప్రచురితమైన కథనంపై ఆయన స్పందించారు. 354 ఎకరాల విలువైన భూమిని పోర్టుతో ఏవిధంగానూ సంబంధంలేని కంపెనీలకు ప్రభుత్వం అప్పగించడం తాము తీవ్రంగా వ్యతిరేకిస్తున్నామన్నారు. కాంగ్రెస్ పార్టీ నాయకులు, ఎమ్మెల్యేలు, ఎంపీలు, మంత్రులకు సంబంధించిన వారికి ఈ భూములు ధారాదత్తం చేశారన్నారు. 1994లో తెదేపా ప్రభుత్వం పోర్టు భూముల కేటాయింపుపై ప్రత్యేకంగా నియమ నిబంధనలను పెట్టిందన్నారు. పోర్టుతో సంబంధం ఉండి దానితో వ్యాపారాలు చేసేవారికే నిబంధనలకు లోబడి భూములు కేటాయించాలని దానిలో స్పష్టం చేశామన్నారు. లీజుకు ఇవ్వడానికి మార్కెట్ విలువకు 6 శాతం అద్దెవిలువ చెల్లించాల్సి ఉంటుందని ఆ తర్వాత ప్రతి మూడేళ్ళకు 15 శాతం అద్దె పెంచాల్సి ఉంటుందన్నారు. ఈ లెక్కన చూసుకుంటే ఏటా వందల కోట్ల రూపాయలు 30 ఏళ్ళపాటు కాంగ్రెస్ నాయకుల జేబుల్లోకి పోతోందని లెక్కతేలుతోందన్నారు. అక్రమంగా కేటాయింపులు చేసిన ఈ భూములను తక్షణం ప్రభుత్వం రద్దు చేయకుంటే ఈ నెల 12 తర్వాత నుంచి పార్టీ ఆందోళన చేపడుతుందన్నారు. తొలుత భూములు పరిశీలన ఆ తర్వాత ధర్నాలు, నిరసనలు చేస్తామన్నారు.
Andhra proposes coastal highway to link petrochemical projects
New Delhi: The Andhra Pradesh government has asked the Centre to build a Rs3,300-crore coastal highway connecting Kakinada and Visakhapatnam to support the petroleum refineries it plans to build in the region.
Andhra Pradesh finance minister Rosaiah Konejeti confirmed the development on Tuesday. “The Centre has shown some interest in helping us,” he said.The state also wants the Union government to spend Rs2,700 crore to develop ports and extend railway lines to the area where a petroleum, chemicals and petrochemical investment (PCPRI) project is coming up.
The project is expected to attract investments of over Rs3 trillion.The proposed highway will help in transporting petroleum products. It may also be extended up to Chennai as a new express passenger corridor.
The Union and state governments will jointly develop infrastructure for the petroleum, chemical and petrochemical factories that will come up in the 603.58 sq. km area identified between Visakhapatnam and Kakinada.
Located close to the oil and gas-rich Krishna Godavari basin off India’s east coast, the PCPRI project is expected to cut business costs and ease operations for refiners, which will also enjoy a tax holiday.
The state government made its requests to the Centre earlier this week, an official familiar with the matter said.The state wants the Union govt to also spend Rs2,700 crore on developing ports, extending railway lines
The state government has told the Union government that the project will be developed through a special purpose vehicle, or SPV, it is setting up.“The Centre has in principle approved the proposal and we would shortly begin the project work,” said an official with Infrastructure Corp. of Andhra Pradesh, or Incap, who did not wish to be identified as he is not authorized to speak with the media.
Incap is the nodal agency for the road projects for the PCPRI project, including the coastal highway, while the Andhra Pradesh Industrial Infrastructure Corp. Ltd, or APIIC, is the nodal agency for the whole project.The official also said Washington-based International Finance Corporation, an arm of the World Bank, has offered project development services for the Kakinada-Visakhapatnam coastal highway project.
While the first phase of the coastal highway corridor project is proposed between Kakinada and Visakhapatnam, the next phase would be extended till Nellore along the coast, the official said.
The other road projects in the region would be taken up through the public-private-partnership model and the government will offer viability gap funding to support the private player, said the official.
He added the existing four-lane national highways will be widened to six lanes.Shipping and road transport secretary Brahm Dutt said the ministry has already received the requests from the Andhra Pradesh government to widen the two highways.“We are already working on these proposals. The proposal for the coastal highway is yet to reach us. Once it comes we will give all assistance. However, we do have some budgetary constraints,” he said.Source: Live Mint
Mega plan for Industrial Corridor
Kakinada, May 19: The government plans to spent Rs 20,000 crore to develop ‘linkages’ for the industrial corridor between Kakinada and Visakhapatnam. These include roads, railways, airports, ports and other external infrastructure.
The proposal has got the nod of the Centre a few days ago. Under this project, a 138 km-long
coastal corridor will be built between Kakinada Port and Gangavaram Port (near Vizag) with six-lane roads and pipeline corridor at a cost of Rs 1,062 crore. In the subsequent phases the link road will be converted into an eight-lane road by spending Rs 875 crore.
As part of the programme, the present Asian Development Bank-sponsored road will be converted as a four-lane road between Kathipudi and Kakinada Port in an extent of 51.07 km. In addition to this, the National Highway 214 will be developed into four-lane road from the present two-lane at a cost of Rs 260 crore. Later, it will be developed into a six-lane road at a cost of Rs 387 crore. As part of the industrial corridor development, the existing NH 5 will be developed into six-lane road for 190 km between Rajahmundry and Visakhapatnam.
In addition to this, the other external road links will be provided with Rs 512 crore. In all,
Rs 4,021 crore will be spent on the road development activity as part of Industrial corridor project. For the development of rail links Rs 1,010 crore will be spend in the corridor. A rail
link of 26 km will be taken up at a cost of Rs 102 crore between APSEZ and Gangavaram. For the provision of rail freight stations and for Gangavaram Port logistics Rs 730 crore will be utilised.
Further, authorities are allocating Rs 2,640 crore for developing airports in the region. This
would include the development of the new Visakhapatnam International Airport with Rs 2,000 crore and the upgradation of Rajahmundry airport at Rs 120 crore. These proposals were discussed at a meet held recently by the Infrastructure Development Corporation of Andhra Pradesh with allied departments.
The proposal has got the nod of the Centre a few days ago. Under this project, a 138 km-long
coastal corridor will be built between Kakinada Port and Gangavaram Port (near Vizag) with six-lane roads and pipeline corridor at a cost of Rs 1,062 crore. In the subsequent phases the link road will be converted into an eight-lane road by spending Rs 875 crore.
As part of the programme, the present Asian Development Bank-sponsored road will be converted as a four-lane road between Kathipudi and Kakinada Port in an extent of 51.07 km. In addition to this, the National Highway 214 will be developed into four-lane road from the present two-lane at a cost of Rs 260 crore. Later, it will be developed into a six-lane road at a cost of Rs 387 crore. As part of the industrial corridor development, the existing NH 5 will be developed into six-lane road for 190 km between Rajahmundry and Visakhapatnam.
In addition to this, the other external road links will be provided with Rs 512 crore. In all,
Rs 4,021 crore will be spent on the road development activity as part of Industrial corridor project. For the development of rail links Rs 1,010 crore will be spend in the corridor. A rail
link of 26 km will be taken up at a cost of Rs 102 crore between APSEZ and Gangavaram. For the provision of rail freight stations and for Gangavaram Port logistics Rs 730 crore will be utilised.
Further, authorities are allocating Rs 2,640 crore for developing airports in the region. This
would include the development of the new Visakhapatnam International Airport with Rs 2,000 crore and the upgradation of Rajahmundry airport at Rs 120 crore. These proposals were discussed at a meet held recently by the Infrastructure Development Corporation of Andhra Pradesh with allied departments.
GMR likely to set up ONGC’s proposed refinery in Kakinada
Investment could exceed original estimate of Rs 31,000 cr
The project to be implemented by Kakinada Refinery and Petrochemicals in which ONGC has a 46 per cent stake, Kakinada Sea Port – 51 per cent and State Government – 3 per cent.
ONGC seeks Rs 16,000 crore sops from the State Govt to make project viable.
Hyderabad, May 28 After UK-based Hinduja Group, Reliance Industries (RIL) and Essar Oil, Oil and Natural Gas Corporation’s (ONGC) proposed refinery at Kakinada, has found a new suitor in GMR Group.
According to sources in the Chief Minister’s Office, GMR could emerge as the prime contender for setting up the refinery in the port town.
“Though it is not yet finalised, the refinery’s capacity could be around 20 million-tonnes-per-annum (MMTA) as against the original plan of 15 MMTA. The investment could also be much higher than the original estimate of Rs 31,000 crore,” the sources said. The project to be implemented by Kakinada Refinery and Petrochemicals, where ONGC has a 46 per cent stake, Kakinada Sea Port 51 per cent and the rest of the three per cent with the State Government.
ONGC had in the past maintained that the refinery was not financially feasible unless the Andhra Pradesh Government gave more incentives. It had sought incentives worth Rs 16,000 crore from the State Government over eight years to make the refinery financially viable.
Tax exemptionThe company wanted exemption from sales tax on the sale of petroleum and petrochemical products, free power and water supply during the construction phase, and road and rail connectivity.
Earlier this month representatives from RIL, Hindujas and Essar Oil had discussions with State Government officials for a stake in the Kakinada refinery for the refinery which is being proposed in a special economic zone (SEZ) being developed by ONGC in Kakinada. It is also learnt that GMR officials had 2-3 rounds of discussion with authorities in the State Government.
“The State Government is keen that the project takes off quickly as it will also help in the proposed petroleum, chemical and petrochemical investment region (PCPIR),” the official said.
Originally, a 7.5-million-tonne refinery was envisaged at Kakinada. But Engineers India Ltd did not find the size techno-economically feasible and so the capacity was doubled.The estimated cost of setting up the 15 million-tonne refinery with high complexity configuration was at Rs 25,000 crore.
Besides, Rs 600 crore was needed to build a single-point mooring and the sub-sea pipeline for transportation of crude oil to the project site.
Source: Business LineBOOM Town >>> Rs 50,000 crore to flow into Kakinada
A special economic zone (SEZ) anchored by a 15-million-tonne refinery and petrochemical plant, a fertiliser plant, captive ports, shipbuilding and rig-servicing yards are a few of the industrial projects planned in Kakinada, on the Coromandel Coast in Andhra Pradesh.
The total investments in the town could go well above Rs 50,000 crore, according to local government officials. Oil and Natural Gas Corporation (ONGC), the country’s largest exploration and production company, is planning to spend close to Rs 26,000 crore to set up a refinery and petrochemical complex in the Kakinada SEZ. It has already acquired 8,000 acres of land for an SEZ, for which it will also be the developer.
The petrochemical plant it plans to set up in the SEZ will receive gas from Reliance Industries’ gigantic D6 block in the Krishna-Godavari basin.
“It is around the RIL gas that all of these industries will come up. Kakinada, which got its first and only industry in the form of two fertiliser plants in the early 1990s, will now see this huge spurt in industrial growth,” said a official from the local administration.
The town will also be co-host to a petroleum, chemical and petrochemical investment region (PCPIR) which is projected to attract investments of over Rs 2 lakh crore.
“The proposed investment in PCPIR, running from Visakhapatnam to Kakinada, is only for onshore areas. Similar investments are likely to be made in oil and gas exploration and production work in the offshore area of the Krishna-Godavari basin,” said M Veerabrahmaiah, joint collector and additional district magistrate, Visakhapatnam.
Much of the investments in Kakinada are expected to be made by Reliance itself. According to sources, the company plans to acquire the two existing fertiliser plants in the town.
One plant, operated by Nagarjuna Fertiliser and Chemicals Ltd (NFCL), produces urea while the other, operated by Godavari Fertiliser and Chemicals Ltd (GFCL), produces phosphatic fertilisers. Although an NFCL official at Kakinada said the plant was not up for sale, an RIL official said the company was increasingly inclined towards making an offer for the two plants.
A port, operated by Kakinada Seaports Ltd, is also likely to be taken over by the Mukesh Ambani-promoted company. “It is the only weak link in the entire chain of gas production from the D6 block. If we can manage to take over the port, the risk of the chain breaking will minimise,” the RIL official said.
RIL had earlier wanted to build a berth for its captive use for loading offshore supply vessels which feed its exploration work in the K-G basin. It currently operates from a dedicated jetty at the port, for which it pays Kakinada Seaports Rs 95 lakh per month. Kakinada Seaport’s chief operating officer Surya Prakash Gutta said the company would sell for a price of Rs 500 crore. The two fertiliser plants are located adjacent to the port.
The Kakinada district administration official said the various companies such as construction firm Larsen & Toubro and Dubai Ports are interested in building a shipbuilding yard in the Kakinada coast. “The yard will also service the rigs which the oil companies use for drilling in the seas,” the official said.
Rigs, which need to be serviced every 3-4 years, have currently been sent to Dubai and Singapore for servicing. The official says investment in building a single shipyard could be to the tune of Rs 4,000 crore.
All of this has resulted in zooming land prices in this Pensioner’s Paradise, the name by which Kakinada is also known. “The price of land has almost doubled over the last couple of years. Cost of living has increased manifold,” Gutta said.
Employment is also on the rise in Kakinada. “That is one of the major ways in which the local people are benefiting,” Tatavarty Srinivasa Rao, a social activist in Kakinada, said.
The man, who protested the privatisation of the Kakinada port 10 years ago, adds: “It gives great potential for industry and training.”
Source: Business Standard
The total investments in the town could go well above Rs 50,000 crore, according to local government officials. Oil and Natural Gas Corporation (ONGC), the country’s largest exploration and production company, is planning to spend close to Rs 26,000 crore to set up a refinery and petrochemical complex in the Kakinada SEZ. It has already acquired 8,000 acres of land for an SEZ, for which it will also be the developer.
The petrochemical plant it plans to set up in the SEZ will receive gas from Reliance Industries’ gigantic D6 block in the Krishna-Godavari basin.
“It is around the RIL gas that all of these industries will come up. Kakinada, which got its first and only industry in the form of two fertiliser plants in the early 1990s, will now see this huge spurt in industrial growth,” said a official from the local administration.
The town will also be co-host to a petroleum, chemical and petrochemical investment region (PCPIR) which is projected to attract investments of over Rs 2 lakh crore.
“The proposed investment in PCPIR, running from Visakhapatnam to Kakinada, is only for onshore areas. Similar investments are likely to be made in oil and gas exploration and production work in the offshore area of the Krishna-Godavari basin,” said M Veerabrahmaiah, joint collector and additional district magistrate, Visakhapatnam.
Much of the investments in Kakinada are expected to be made by Reliance itself. According to sources, the company plans to acquire the two existing fertiliser plants in the town.
One plant, operated by Nagarjuna Fertiliser and Chemicals Ltd (NFCL), produces urea while the other, operated by Godavari Fertiliser and Chemicals Ltd (GFCL), produces phosphatic fertilisers. Although an NFCL official at Kakinada said the plant was not up for sale, an RIL official said the company was increasingly inclined towards making an offer for the two plants.
A port, operated by Kakinada Seaports Ltd, is also likely to be taken over by the Mukesh Ambani-promoted company. “It is the only weak link in the entire chain of gas production from the D6 block. If we can manage to take over the port, the risk of the chain breaking will minimise,” the RIL official said.
RIL had earlier wanted to build a berth for its captive use for loading offshore supply vessels which feed its exploration work in the K-G basin. It currently operates from a dedicated jetty at the port, for which it pays Kakinada Seaports Rs 95 lakh per month. Kakinada Seaport’s chief operating officer Surya Prakash Gutta said the company would sell for a price of Rs 500 crore. The two fertiliser plants are located adjacent to the port.
The Kakinada district administration official said the various companies such as construction firm Larsen & Toubro and Dubai Ports are interested in building a shipbuilding yard in the Kakinada coast. “The yard will also service the rigs which the oil companies use for drilling in the seas,” the official said.
Rigs, which need to be serviced every 3-4 years, have currently been sent to Dubai and Singapore for servicing. The official says investment in building a single shipyard could be to the tune of Rs 4,000 crore.
All of this has resulted in zooming land prices in this Pensioner’s Paradise, the name by which Kakinada is also known. “The price of land has almost doubled over the last couple of years. Cost of living has increased manifold,” Gutta said.
Employment is also on the rise in Kakinada. “That is one of the major ways in which the local people are benefiting,” Tatavarty Srinivasa Rao, a social activist in Kakinada, said.
The man, who protested the privatisation of the Kakinada port 10 years ago, adds: “It gives great potential for industry and training.”
Source: Business Standard
Friday, May 23, 2008
Centre’s Nod to Petro-Chem region in Andhra Pradesh
Hyderabad, May 22: The Centre has approved the first Petro Chemical Investment Region in the country to be set up between Visakhapatnam and Kakinada. A high-level official committee — headed by the Union Cabinet secretary, Mr M. Chandrasekhar, met at New Delhi on May 21 and cleared the state's proposal.
Though the committee was supposed to give a green signal to the proposal last week, the meeting was postponed due to Jaipur blasts. “The committee gave the approval and the same would be put for the Cabinet’s clearance,” the managing director of the Andhra Pradesh Industrial Infrastructure Corporation, Mr B.P. Acharya, told this correspondent. The Petro Chemical Investment Region will be set up in 74,000 acres and the projected investment in the region is Rs 3 lakh crore.
Source: Deccan Chronicle - May 23, 2008
Though the committee was supposed to give a green signal to the proposal last week, the meeting was postponed due to Jaipur blasts. “The committee gave the approval and the same would be put for the Cabinet’s clearance,” the managing director of the Andhra Pradesh Industrial Infrastructure Corporation, Mr B.P. Acharya, told this correspondent. The Petro Chemical Investment Region will be set up in 74,000 acres and the projected investment in the region is Rs 3 lakh crore.
Source: Deccan Chronicle - May 23, 2008
Reliance gas production put off
Decision is because of operational problems
RIL from KG basin gas field expected to produce 80 mcm
The company holds a 90 per cent stake in the D6 block
Rajahmundry: Mukesh Ambani’s Reliance Industries which struck huge gas from its D6 block in the Krishna-Godavari basin in the Bay of Bengal and set to go for production from July has postponed its plans to the year-end.
After entering into an MoU with GAIL (India) for distribution and transportation it has finalized to start production in July and proposed to invest $ 5.2 billion in its facility.
As per Reliance Industries sources, the RIL is not in a hurry to start production immediately in KG Basin as it has encountered some operational problems onshore. The RIL is also having some tie-up problems with Andhra Pradesh, Gujarat & other states in distribution of gas.
The RIL from its KG basin gas field is expected to produce 80 million cubic meters (2.8 billion cubic feet) of gas per day, out of which it will take around 60 million cubic meters to its Gujarat and rest of 20 million cubic meters will be given to its customers in Andhra Pradesh.
Reliance Industries believes that there are reserves of more than 14.5 trillion cubic feet in the D6 block. The company currently holds a 90 per cent stake in the deepwater D6 block. The remaining 10 per cent is owned by Canada-based company Niko Resources.
DistributionAs per Reliance sources, at present the ONGC, Cain Energy and others have a tie-up with GAIL (India) for distribution of gas which they are producing from KG Basin. The distributor’s network in Andhra Pradesh includes NFCL (Kakinada) 2 million cubic meters per day, Lanco, Vijayawada 1.5 mcm, GVK 1.00 mcm, REL, APGPCL, Spectrum, Regency Ceramics, Dloex, Rolex paper mills, Andhra Sugars and so on. “All put together there will be around 38 to 40 customers for us.
They need a maximum of 17 million cubic meters per day. But, now they are getting only 7 million cubic meters a day”-said GAIL sources. The Reliance Industries currently produces a wide range of products, ranging from polymers to petroleum to garments.
The Reliance is also planning to have a tie-up with Bhagyanagar Gas Company Limited for opening CNG outlets in Hyderabad, Vijayawada and Visakhapatnam in first phase and Rajahmundry, Tirupati, Kurnool, Nellore and Karimnagar in second phase.
Friday, May 9, 2008
Hindujas keen on AP refinery
New Delhi, May 8: The Hinduja group plans to go ahead with Rs 25,600-crore refinery at Kakinada even if its indecisive project partner Oil and Natural Gas Corporation (ONGC) opts out. “We have given in writing to the Andhra Pradesh Chief Minister that we are keen to set up the project, with or without ONGC,” Hinduja Group chairman G.P. Hinduja said.
ONGC had put a slew of conditions, including the state government giving 950 acres of land free of cost, sales tax exemption and fiscal concessions equivalent to a Special Economic Zo-ne (SEZ), for setting up the 15 million tonnes refinery-cum-petrochemical project at Kakinada.
The concessions would cost the state government about Rs 16,000 crore. Even if ONGC were to join the project, the London-based Hinduja group is keen to take a majority stake, he said. However, Hinduja was optimistic about the economic feasibility of the project and said the Group has also informed the state government of the source of crude oil for the refinery. After the exit of Mr Subir Raha, whose had drawn a blueprint to catapult ONGC to become second largest refiner in the country, ONGC has fettered away the downstream expansion plans and the new management has taken a dim view of the Kakinada project.
It also wants the stated to give free power and water to the project, provide road and rail connectivity, develop sewage and refinery effluent disposal system and give communications connectivity to enhance the 10.27 per cent return on capital currently. After his exit from ONGC, Mr Raha joined Hindujas and soon after the automobile-to-banking group evin-ced interest in picking a majority stake in the Kakinada refinery project
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