Mangalore PCPIR gets a green signal

The Centre has cleared the proposal of Mangalore Petroleum, Chemical & Petrochemical Investment Region with an investment of Rs 30,000 crore.The nodal agency will soon form a special purpose vehicle for processing land acquisition, licensing and global tendering, etc. As per the proposal, the company will comprise Mangalore special economic zone, New Mangalore port and Mangalore airport.The project is to be executed in three phases from 2008-2026 (phase-I from 2008-2014, phase-II from 2015-2020 and phase-III from 2021-2026) will come to an operational form by July-end and final drafting will be sent to the Centre by early August.The project, proposed by Karnataka government in 2006 through Karnataka State Industrial Investment Corporation, has seen the light of day. The total investment of PCPIR is around Rs 2,31,000 crore.The Centre has asked the state to provide about 300 sq. km land for the project and create infrastructure like roads, water resources, public amenities, housing projects, transport and other facilities, the sources said. The Centre has also asked the special purpose vehicle to acquire the land close to MRPL petrochemical complex.Mangalore Refineries & Petrochemicals Ltd has been cited as a major investor in the project, followed by several downstream industries and ancillaries, the sources added.The master plan submitted by the Karnataka government cites that Petroleum, Chemical & Petrochemical Investment Region will be scattered across two districts in various components. The master plan also cites that the water required for PCPIR will be drawn from Gurupura and Shambhavi rivers.N. Yogish Bhat, former Chairman of KSIIDC, who has been reelected to Karnataka state assembly recently said, "PCPIR is a large investment which has to be welcomed by the district as it will not only spur the overall development, but also offer a large number of employment opportunities."

Here is an update:The BJP government in Karnataka is set to scrap this project.The BJP government doesn’t favour Petroleum, Chemical, Petrochemical Investment Region (PCPIR) project in the district as the state wouldn’t encourage projects which aren’t in people’s interest. Another reason is the environmental imbalance the project might trigger.The state cabinet would decide against the project and convey the decision to the Centre shortly. The minister said the Mangalore SEZ had been approved by the state and land for Phase II of the project would not be acquired through coercive methods.On questioned that MLA Yogish Bhat had evinced interest in the PCPIR when he headed KSSIDC, Palemar said both Bhat and he were unaware of the disastrous effects of the PCPIR project. “Now that we know what the project is, we are not keen,’’ he added. The project would have required 74,000 acres of land in 74 villages. Palemar said it was contrary to his assumption that the project would be on one site like an SEZ. “Now we hear there would be clusters. This is not good.’’ He wondered how could the region supply 64 crore litres of water per day needed for the project, when the city still reels under water shortage every summer. Clarifying that he wasn’t against development, Palemar said any industry which fuels development like IT, tourism, banking, health and education was welcome.