Wednesday, March 13, 2013

Rs 12k crore petro project a mirage, no progress on Amerind raises doubts


By SNV Sudhir 

Visakhapatnam, Mar 12, 2013: Silence on the much hyped, Rs 12, 000 cr worth, petro chemical complex proposed to be set up by Amerind Petroleum Pvt Ltd in Petroleum Chemical Petrochemical Investment Region (PCPIR) is raising many eyebrows.
Adding fuel to the speculations and allegations that the project has ample scope for money laundering, there was no follow up either from the company representatives or the state government on setting up the project.
Amerind Petroleum Pvt Ltd has inked a MoU with the state government on Nov 17, 2011 to establish an Rs 12,000 worth crore refinery complex near Vizag in the PCPIR.  The company planned to relocate an existing US refinery. According to US Environment Protection Agency (EPA), it is a 64 year old polluting refinery.
Special package of incentives as per Industrial Promotion Policy 2010-15, industrial clearances and approvals through Single Window Clearance in a time-bound period was offered to Amerind. To help the company in the initial marketing, tie-up support with the public sector oil companies,  IOCL and BPCL was also considered besides procurement of land for the project through APIIC in the PCPIR region.   
But now, highly placed sources in the APIIC said they never received any directions or further orders from the state government on the project work or to acquire requited land for the refinery. “Strangely none from the Amerind approached us or we received any directions from our higher ups on the project. We heard it from the news reports in 2011 that government signed such a MoU for setting up the refinery and after that there was no follow up from the either side,” a senior official of the APIIC who is in the know of PCPIR project developments told this correspondent.
Former union energy secretary EAS Sarma, who filed an application before the industry department under RTI Act seeking copies of the file notings and the correspondence on the subject earlier was surprised to understand the casual manner on the part of the state government to sign the MoU for the project.
“Government should have not rushed into permitting a fly-by-night operator to shift an obsolete refinery in USA to Vizag area, creating an enormous scope for money laundering and shifting toxic pollution from New Jersey in USA to Vizag,” he opined. 
Sarma said that according to the file notings the department was also clueless about the background of the promoter of Amerind, Syed Badruddin. 
Amerind Petroleum had nothing to show by way of experience in oil refining or in any important economic activity.  Amerind had no audited accounts to show.
“A small time company promoted by a small time operator proposing to set up a large oil refinery in the state would have raised doubts in the mind of any prudent government official. The fact that it did not in the instant case shows that either the officials were incompetent or outright dishonest,” Sarma pointed.
The funding for the project was also raised a many doubts when the US Exim Bank Chairman,  Fred Hochberg, during a visit to Hyderabad in Jan last year confirmed that the bank had issued a Letter of Interest to Amerind, but has not yet confirmed grant of loan. Amerind had earlier stated that the project was being funded by the US Exim Bank. The company has a technical collaboration with the American Industrial Corporation, which is a consortium of 14 US companies to set up the refinery with initial capacity of 7.5 million tones.

No comments: