By Vikas Srivastava
Jun. 18 – The government of India is implementing more initiatives to attract more foreign direct investment in its petroleum, chemicals and petrochemical sectors by establishing specific investment regions for this.
The Petroleum, Chemicals and Petrochemical Investment Regions (PCPIRs) will be established in the state of West Bengal, Andhra Pradesh and Gujarat. The government plans to set up investment regions which will offer foreign and domestic players networking and a common infrastructure of services to provide cost benefit opportunities suitable for new ventures and leading to growth in production, exports and job creation.
The region will be about 250 km in area with manufacturing facilities, production units, environmental protection mechanism, residential areas logistics, infrastructure and other services required for processing and distribution of the products. The region will also be divided into a processing and non-processing area harbored by refineries or petrochemical feedstock companies.
Apart from these facilities the PCPIR will also consist of special economic zones, industrial parks, export oriented units and free trade and warehousing zones. The companies in the special zones can still avail of relevant benefits despite being a part of the PCPIR.
The PCIPIR external physical infrastructure and financial support will be set-up by the government while the internal infrastructure will be built and managed by developers.
Vikas Srivastava is a legal associate of foreign direct investment at the Mumbai, India office of Dezan Shira & Associates. For more inquiries, email mumbai@dezshira.com.
