Saturday, April 13, 2013

Once bitten, twice shy on land allotment to HPCL


By SNV Sudhir

Visakhapatnam, April 12, 2013: Not willing to take any chances again, Andhra Pradesh Industrial Infrastructure Corporation (APIIC) authorities are now waiting for a written assurance and firm commitment from the state owned oil major Hindustan Petroleum Corporation Ltd (HPCL) on the latter’s application to re allot the land taken back by the state government.

APIIC in May last year cancelled the allotment it made to the HPCL for its proposed 15 million tonne refinery with an investment of Rs 45, 000 cr for delay in grounding the project on time.

HPCL was allotted around 1,500 acres at Atchyutapuram in AP Special Economic Zone (APSEZ) for setting up of Greenfield oil refinery and petrochemical complex.
While the project was proposed in 2005-06 as an anchor project of Visakhapatnam-Kakinada Petroleum, Chemical and Petrochemicals Investment Region (PCPIR), land was allotted in 2007.

Land was allotted after HPCL formed a consortium with Gas Authority of India Ltd., Oil India, Mittal Energy, and TOTAL of France.  But due to reasons unknown, HPCL could not ground the project forcing the APIIC to cancel the allotment last year.

Recently, HPCL senior officials approached the APIIC with a revival plan seeking re allotment of the land. This time the oil company proposed to set up a 9.5 mtpa refinery, which will cost around Rs 20,000 crore initially, instead of 15 million tonne as envisaged earlier.  However, HPCL is said to have informed APIIC that subsequently capacity would be doubled to 18 mt in the coming years.

 “This time we are looking for a timeline written assurance. And now there are no any land acquisition pangs as land is readily available which we have acquired earlier for the same project and also as part of PCPIR. It doesn’t take much time for us to re allot the land but we are waiting for a written commitment from HPCL,” a senior official of APIIC looking after PCPIR activities told this correspondent. 

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