Hindustan Petroleum Corp (HPCL) and GAIL India signed an agreement with the Andhra Pradesh government for setting up a Rs 40,000-crore petrochemical plant in the state.
Hindustan Petroleum Corp (HPCL) and GAIL India signed an agreement with the Andhra Pradesh government for setting up a Rs 40,000-crore petrochemical plant in the state. “We have signed an MoU expressing intent for setting up the petrochemical plant,” BC Tripathi, CMD, GAIL said at the two-day CII Investment Summit in Visakhapatnam. The 50:50 joint venture will set up a 1.5 million tonnes ethylene derivatives plant, which will produce a wide range of petrochemical raw materials for the manufacture of detergents, paints and coatings, cosmetics, textiles and adhesives. The plant will be set up at the Petroleum, Chemical and Petrochemicals Investment Region (PCPIR) sites identified by the state government at Kakinada.
Further, in another MoU Aditya Birla group plans to invest Rs 7,000 crore in the next two years in Andhra Pradesh on expanding existing businesses, Kumar Mangalam Birla, chairman, said. The company already has investments of R10,000 crore in the state across sectors like telecom, retail and cement.
“Our experience in Andhra Pradesh was fruitful… Until now our investments are of the order of about R10,000 crore. We have created employment for 11,000 people both direct and through ancillary industries,” Birla said at the two-day CII Investment Summit in Visakhapatnam.
“As we go along, we expect to invest another R7,000 crore in the next two years. This will be towards expansion of our existing businesses,” he added. The company has set up a cement plant with capacity of 5.6 million tonnes. “We are acquiring a five million tonnes per annum plant at an investment of R3,000 crore located near Amaravati city,” he said. In the telecom sector, Idea cellular currently serves eight million customers through 69,000 outlets and nearly 9,400 cell sites. “This year, we will be extending 3,500 cell sites largely 3G and 4G at an investment of over R1,300 crore,” Birla said.
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In the branded apparel and retail business, the company has 240 stores and is looking at increasing the presence as also in the financial services sector.
Earlier, inaugurating the summit, Arun Jaitley, minister of finance and corporate affairs, said that three key directional shifts are powering India’s growth. These include the JAM trinity (Jan Dhan Yojana, Aadhar, Mobile), GST and Demonetisation. The GST would make India into one large market and would go a long way in making doing business in India much more easier. Demonetisation has helped to make the economy much more compliant. He said that the Centre has a vested interest in the progress of Andhra Pradesh. He observed that the state’s GDP is likely to grow 4-5% ahead of the national GDP growth rate.
According to SP Tucker, chief secretary, government of Andhra Pradesh stated that the state of Andhra Pradesh ranked No 2 in terms of ease of doing business in the country and this year, it was on top. The state was undertaking reform measures to sustain double digit growth for the next 10-15 years. He also said that the government works near real time in reviewing investment proposals. In 2016-17 alone, projects worth R1,17,000 crore had gained traction in the state.