Ministry of Chemicals & Fertilizers

Department of Chemicals & Petrochemicals

Shastri Bhawan, Dr. Rajendra Prasad Road, New Delhi-110001
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(i(i 4, 2007 / i 14, 1929
. 93
As published in
the Gazette of India
Extraordinary, Part- I - Section 1
th
Dated 4 April, 2007, Chaitra 14, 1929
No. 93
iin i
i i ( -ii
i i -ii l(ii^
i`iii -iii`ii-i :iiii
i -ii:iiii i`iii i-i
(-ii:ii-ii~iir~ii, i .ii:iiti
i i`i iii`i :ii-i
Policy Resolution
for Promotion of
Petroleum, Chemicals
and Petrochemical
Investment Regions
(PCPIRs)

The Petroleum, Chemicals and Petrochemical industry in
India is well established and has recorded a steady growth
over the years. The industry offers a wide scope for
development that contributes positively to economic
growth and regional development. The future outlook for
the industry is bright with positive developments
anticipated in various chemical sub sectors.
To promote investment in this sector and make the country
an important hub for both domestic and international
markets, the government has decided to attract major
investment, both domestic and foreign, by providing a
transparent and investment friendly policy and facility
regime under which integrated Petroleum, Chemicals &
Petrochemical Investment Regions (PCPIRs) may be set up.
The PCPIRs would reap the benefits of co-siting,
networking and greater efficiency through the use of
common infrastructure and support services. They would
have high-class infrastructure, and provide a competitive
environment conducive for setting up businesses. They
would thus result in a boost to manufacturing,
augmentation of exports and generation of employment.
POLICY OBJECTIVES
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ii-ii ~iiii-i .i(ii iii t iii`i ~iiiii ii`- i i-iii
i`iii:i -i :ii`siii iii(ii iii t i`ii`ii :iiii -ii-ii -i
iti i`iii:i ii ~i-iii tii i iii r:i iii ii ii`ii
ii t
r:i i-i -i i`iii ii .ii:iii`ti ii i (i ii ii i i`i(ii
(iii iiiii -i i -iti-ii is i -i -i i`iii`:ii ii i
i`i :iii i i:iii ~iiiiii :iiii ii-ii :iii`-ii
ii i i`i -iiiii .ii`i:-iii i ~iiii-iii ii-iii`i
iiiiii i :iii i i`iii i-i :iii`-ii ii ii i i`i(ii
(iii :i -iti-ii i`iii ~iii ii ii i`iii i`iii t it i-i
i :i-ii`ii -iii`ii-i :iiii i -ii:iiii -ii`:i tiii ii
:i-iii ~iiiiii :iiii :itiii :iii~ii i .iiii (ii i
:iii -i ~iii:ii tii iiiii i iti (iii i:i -iii(i :i
iiiiiii tiii :i -ii`:i :i i`ii`i-iii ii i.iii i`-iiii
i`iiii -i i.iii tiii i iiii :ii`ii tii
iii`i i i
2 1
i`iii -iii`ii-i :iiii
i -ii:iiii i`iii i-i
(-ii:ii-ii~iir~ii, i .ii:iiti
i i`i iii`i :ii-i
Policy Resolution
for Promotion of
Petroleum, Chemicals
and Petrochemical
Investment Regions
(PCPIRs)
A Petroleum, Chemicals and Petrochemicals Investment
Region (PCPIR) would be a specifically delineated
investment region with an area of around 250 square
kilometers planned for the establishment of manufacturing
facilities for domestic and export led production in
petroleum, chemicals & petrochemicals, alongwith the
associated services and infrastructure.
A PCPIR would be a combination of production units,
public utilities, logistics, environmental protection
mechanisms, residential areas and administrative services.
It would have a processing area, where the manufacturing
facilities, alongwith associated logistics and other services,
and required infrastructure will be located, and a non-
processing area, to include residential, commercial and
other social and institutional infrastructure. The minimum
processing area for the PCPIR will be about 40% of the total
designated area, i.e., around 100 sq km. The processing area
may or may not be contiguous.
The PCPIR may include one or more Special Economic
Zones, Industrial Parks, Free Trade & Warehousing Zones,
Export Oriented Units, or Growth Centres, duly notified
under the relevant Central or state legislation or policy. All
CONCEPT OF PCPIR -ii:ii-ii~iir~ii ii ~ii`ii-iii
-iii`ii-i :iiii i -ii:iiii i`iii i-i (-ii:ii-ii~iir~ii,i
i`iii -i :i i`iitii i-i tiii ii zsc ii i`iii-ii i-i-ii
-i -iii`ii-i :iiii i -ii:iiii -i ii i i`iiii -ii
-ii(i i i`i i`ii`i-iii :ii`iii~ii i :iii :iii :itiii :iii
i ~iiiiii ~ii:iiii :iii`-ii ii i i`i i`iiii`ii tiii
-ii:ii-ii~iir~ii -i -ii(i riirii :iiiii`ii :ii`iii
iii`ii:i -iiiii :iii i-i ~iiii:iii i-i i .iii:ii`ii
:iii :ii--ii`ii tiii r:i-i i .ii:ii`:ii i-i tiii iti
i`ii`i-iii :ii`iii~ii i :iii :iii :itiiii iii`ii:i i ~ii
:iii iii ~iiiii .iiiii :ii`iii :iii`-ii tiii, i i
iii .ii:ii`:ii i-i tiii i`i i`i:i-i ~iiii:iii iii`iiii i ~ii
:ii-iii`ii i :i:iii`ii ~ii:iiii -iii tiii
-ii:ii-ii~iir~ii i i`i iii-i .ii:ii`:ii i-i ii i`iitii i-i
ii iiii +c~ iii`i :cc ii i`iii-ii ii tiii .ii:ii`:ii
i-i iii t~ii ti :iiii t ii iti ii ti :iiii
-ii:ii-ii~iir~ii -i i ii i :i ~ii`ii i`iii ~iiiii iii
r:iii -iii .ii i ii tii`:ii i-i i`iiiii-ii
riir ii iii :i iii`-ii ti :iiii t ii i`i .ii:iii`ii isii
ii ii i iiii ii iii`i i ~iiii i`ii`iii ~ii`i:ii`ii tiii
4 3
the benefits available under the relevant legislation or
policy will continue to remain available to the said Zones or
Parks, as the case may be, forming part of the PCPIR.
The PCPIR could cover existing settlements/industries &
estates/ services and would therefore benefit from and be
complementary to the region. The concerned state
government may not acquire the entire area comprising the
PCPIR, but it will notify the same under the relevant Act for
proper planning and zoning to ensure coordinated
development.
(Note: The word 'state' as used in this document shall include
Union Territory)
Each PCPIR would have a refinery/ petrochemical
feedstock company as an anchor tenant. The internal
infrastructure of the PCPIR will be built and managed by a
Developer, or a group of Co-developers. The external
linkages will be provided by Government of India and the
concerned state government. The users of external as well
as internal infrastructure will pay for its use, except to the
extent that the government supports the service through
budgetary resources.
:iii`ii iii`i ii iiii i ~iiii -iii :iii :ii`iii
-ii:ii-ii~iir~ii -i :iii ii iii ii -iii i:iii`i -ii-iii ti
ii -iii tiii tii
-ii:ii-ii~iir~ii ii-iii ~ii:ii-iii~ii!iiii i :i!:iii~ii
ii ii iii`-ii i :iiii t ~ii r:i it i i:i iii ii i
:iiii t iii i-i i i`i ~ii-ii ii iii iii :iii`ii
ii :iii -ii:ii-ii~iir~ii -i :i-i:i i-i ii ~ii`iitii iti ii
i :iiii t ii`ii :i .ii:ii`ii ~ii`ii`ii-i i ~iiii
~ii`i:ii`ii iii tiii iii`i :i-iiii i`iii:i i i`i :i-ii`ii
i`iiiii i iii`ii i`iii ii :ii
I:: .-: -::: : -: ::: : : :: :: -: -: : : : -:: ::::-` :: s)
.iii -ii:ii-ii~iir~ii -i i i`-iirii!-iiii`-iii -ii:ii
i-iii i i i -i -i tiii -ii:ii-ii~iir~ii ii ~iiii`i
-ii:ii-ii~iir~ii ii ~iiii`i ~ii:iiii i`iii:iiii ii :it
i`iii:iiii~ii i i :i-it (ii i`ii-ii i i`iii`:ii tiii iiti
i`iii iii :iii i :iii`ii ii :iii (ii -iiii
iiii iiii iiti i ~iiii`i ~iiiiii :iiii~ii i
-iiiiiii ii -iiii ti i`ii :iii~ii i i`i :iii iiii
:iiii :i :itiii iii t ii iiii :iii~ii i i`i
iiiii iii tiii
6 5
i`iii -iii`ii-i :iiii
i -ii:iiii i`iii i-i
(-ii:ii-ii~iir~ii, i .ii:iiti
i i`i iii`i :ii-i
Policy Resolution
for Promotion of
Petroleum, Chemicals
and Petrochemical
Investment Regions
(PCPIRs)
ROLE OF THE CENTRAL GOVERNMENT
Government of India (GOI) will consider under this Policy
all applications for establishment of PCPIRs and approve
expeditiously such proposals as are found feasible. It will
constitute a High Powered Committee to ensure necessary
coordination among central ministries and state
government, and also monitor the progress of
environmental and other clearances, as well as
development of the PCPIR, at required intervals.
Government of India will ensure the availability of external
physical infrastructure linkages to the PCPIR including
Rail, Road (National Highways), Ports, Airports, and
Telecom, in a time bound manner. This infrastructure will
be created/upgraded through Public Private Partnerships
to the extent possible. Central Government will provide the
necessary viability gap funding through existing schemes.
Wherever necessary, requisite budgetary provisions for
creation of these linkages through the public sector will also
be made.
Government of India will also support the state
government concerned, and its agencies, in the
dissemination of information, with a view to promoting
domestic as well as global investment in the PCPIR.
is :iii ii ii`-iii
iii :iii ~i-iii iii`i i ~iiii -ii:ii-ii~iir~ii ii
:ii-iii i i`i .ii-i :iii ~iii(ii -i i`iii iii ~ii ii
.i:iii iitii tii t iii :i :iiii`i .i(ii iii it
i iiii .ii-i :ii`-ii`i ii`i iii iii`i isii -i-iiiii
i ii :iii i iii ~iiiii :i-iii, iii -iiiiii i
~ii iiii:i ii .iii`i i :iii :iii -ii:ii-ii~iir~ii i
i`iii:i ii i`iii`-ii ~iiii -i i`iiiii :ii`iiii ti :ii
iii :iii -ii:ii-ii~iir~ii -i iiti iii`ii :iiii i`iii
i:i i :ii (iii ii-iii, -ii i`i-iii-iii i
(:iii ii :i-iii- -i :i -iiiii :ii`iiii iii i
.iiiii :ii`iii iti ii :iii ti :iiiii`ii i`iii
iiii(ii i -iii-i :i iiirii ii iiii is :iii
-iii(i :ii-ii (ii ~iiiii iiii`ii`ii i-i -ii`i -iii
iiiii iti ~iiiii tiii ri i`iii i i`i-iii ti
:iiiii`ii i-i i -iii-i :i :i~i-ii`ii iiii .iiiiii ii
i`iii iiii
iii :iii :iii`ii ii :iii i r:iii ii`:iii ii ii
-ii:ii-ii~iir~ii -i ii i iiii i`iii .ii:iii`ti ii i
i`i :iiii .ii-ii -i :itiii iii
8 7
i`iii -iii`ii-i :iiii
i -ii:iiii i`iii i-i
(-ii:ii-ii~iir~ii, i .ii:iiti
i i`i iii`i :ii-i
Policy Resolution
for Promotion of
Petroleum, Chemicals
and Petrochemical
Investment Regions
(PCPIRs)
ROLE OF THE STATE GOVERNMENT
The State Government would play the lead role in setting
up of the PCPIR. It would identify a suitable site, prepare
the proposal and seek approval as elaborated below. It will
notify the PCPIR area under the relevant Act, and acquire/
assist in acquiring the land necessary for setting up of the
infrastructure, processing and non-processing areas. The
acquisition of land if any must be in accordance with law
and must provide for rehabilitation as per the laid down
norms. As far as possible acquisition of agricultural land
may be avoided.
The State Government, applying for a PCPIR, will ensure
that after notifying the area, all physical infrastructure and
utilities linkages under its jurisdiction are provided within
a stipulated time frame. The State Government will notify a
nodal Department, which will coordinate these linkages.
This Department along with relevant authorities will
facilitate all clearances required from the State
Government.
-ii:ii-ii~iir~ii ii :ii-iii -i ii :iii ii ~iiii ii`-iii
tii it i -iiii :ii ii iii iii .i:iii iii
iii ~ii iii i`( i iii :iiii`i .ii-i iii it
-ii:ii-ii~iir~ii ii .ii:iii`ii ~ii`ii`ii-i i ~iiii ~ii`i:ii`ii
iii i .ii:ii`:ii iii iii.ii:ii`:ii i-i -i .iiiii ~ii:iiii
ii :ii-iii i i`i ~iiiii ii`-i ~ii`iiti iii ii`( i`i:ii
ii`-i ii ~ii`iiti iii -i ii it iiii :i--ii tiii iii`t ~ii
i`iiii`i -iiiii i ~ii-i -iiii:i ii .iiiiii tiii iii`t iti
ii :iii ti :ii ii`i iii ii`-i ii ~ii`iiti iti i`iii iiii
iii`t
-ii:ii-ii~iir~ii i i`i ~iii(i i ti ii :iii ii
:ii`iiii iii tiii i`i i-i ii ~ii`i:ii`ii ii i -iii
:i-ii :ii-ii i iii :ii ~ii`iii i-i i ~iiii ~iii iiii
iii`ii ~ii:iiii i :ii`iii -iiii iiii tiii ii
:iii i iii i`iiii ~ii`i:ii`ii iii ii i`i ri i`iii ii
:i-iii iii it i`iiii ~iiiii .iii`iii i :iii ii
:iii :i ~iiiii iiii:i -iiii iiii
ii :iii ii ii`-iii
10 9
In particular, the State Government will be responsible for
providing/facilitating the following infrastructure:
i) Power connectivity and availability of reliable and
good quality power. The units may also seek open
access as per the regulations of the State Electricity
Regulator Commission.
ii) Provision of bulk requirements of water;
iii) Road connectivity (State roads);
iv) Sewerage and effluent treatment linkages, from edge
of PCPIR, to the final disposal sites;
v) Appropriate infrastructure to address the health,
safety and environmental concerns.
The State Government may also notify an additional
package of incentives for the development of the PCPIR.
The State Government would constitute a Management
Board for development and management of the PCPIR,
with functions as detailed below. This may be done under
the relevant state Act; the state will legislate a new Act if
necessary.
ii:iii -i i`i-ii`ii`ii ~iiiiii ~ii:iiii -iii iii
i i`i ii :iii i(iii tiii
i) i`iii :i--ii ~ii i`ii:iiii i iti iiiii iii i`iii ii
-iiiii ii`i ii i`iii i`ii`iii-ii ~iiiii i i`ii`ii-ii
i ~ii:ii iii -iti ii -iii i :iii t
ii) ~iiiii .ii ii ii .iiiiii
iii) i :i-ii (ii :ii,
iv) -ii:ii-ii~iir~ii :i ~ii`i-i i`:-iiii :iir ii :iii`ii i
~i-ii`i iiii i`iii
v) :ii:i :iii i -iiiii -ii i i`i :i-ii`ii ~iiiiii
~ii:iiii
-ii:ii-ii~iir~ii i i`iii:i i i`i ii :iii ~ii`ii`ii r:ii`i
-iii ii ~ii`i:ii`ii i :iiii t
-ii:ii-ii~iir~ii i i`iii:i i .iiii i i`i ii :iii .iiii
ii ii ii iii i`i:ii iiii ii i`iii iii i`(ii ii ti t
it :ii .ii:iii`ii ii ~ii`ii`ii-i i ~iiii i`iii iiii ii`(
~iiiii t~ii ii ii :iii iii iiii ii ii :iiii t
12 11
i`iii -iii`ii-i :iiii
i -ii:iiii i`iii i-i
(-ii:ii-ii~iir~ii, i .ii:iiti
i i`i iii`i :ii-i
Policy Resolution
for Promotion of
Petroleum, Chemicals
and Petrochemical
Investment Regions
(PCPIRs)
The Department of Chemicals and Petrochemicals
(DoC&PC) will be the nodal department of the Government
of India for the PCPIRs.
A High Powered Committee constituted by the
Government of India will scrutinize applications for setting
up the PCPIR, and subsequently monitor and expedite the
progress of implementation. The composition of the High
Powered Committee is at Annex 1.
A Management Board constituted by the concerned state
government for each PCPIR, under the relevant legislation,
will be responsible for the development and management
of the PCPIR. It will also be empowered to issue/expedite
state level approvals. If the state legislation permits, the
Board may be an SPV in a corporate form headed by a CEO
with sufficient autonomy, with the participation of the
Developer or Co-developers, as well as the anchor tenant.
In addition the State Government should also constitute a
supervisory body as a PCPIR state level Empowered
Committee to :
a) Monitor, review and appraise the functions and the
performance of the PCPIR.
b) Deal with issues relating to disputes between the
stakeholders.
c) Any other function as may be prescribed by the State
Government.
INSTITUTIONAL FRAMEWORK :i:iii`ii -iii
-ii:ii-ii~iir~ii i i`i iii :iii ii iii i`iiii :iiii i
-ii:iiii i`iiii tiii
-ii:ii-ii~iir~ii ii :ii-iii i i`i ~iii(ii ii :iii (ii ii`i
i i ~ii`iii .ii-i :ii`-ii`i iii iii i :ii ii(
iiiiiii ii .iii`i -i iii iiii i i`iiiii iii i
~ii`iii .ii-i :ii`-ii`i ii :iiii ~iiii -i t
.iii -ii:ii-ii~iir~ii i i`i :iii`ii ii (ii i .iiii ii
-iiii iiii i ~iiii ii`i i`iii iiii ~ii it
-ii:ii-ii~iir~ii i i`iii:i i .iiii i i`i i(iii tiii it
ii :iii :iiii`iii :i iii ii! iii iii i i`i :iiii
tiii ii`( ii iiii ~ii-ii`i (ii ii ii-ii iii -i i
:i-iiii tiii i`i:iii ~iii :iir~ii tiii i :i :i-ii`ii
:iiiiii .ii-i tiii iii :i ii -i i`iii:iiii ii :it
i`iii:iiii i :iii:iii i i ii iiii(ii ti :iiii
r:ii ~ii`ii`ii ii :iii i -ii:ii-ii~iir~ii ii :iii
~ii`iii .ii-i :ii`-ii`i -ii:ii-ii~iir~ii :iir:ii i -i -i i
-iiiii i`iiii ii ii i`i-ii`ii`ii ii i i`i iii
(i, -ii:ii-ii~iir~ii i iii i`i-ii(i ~ii iiii ii i`iiiii
:i-iiii ~ii -iiiii
(i, :iiiii i iii tii iii i`iii( :i :iii`ii -ii-iii :i
i`i-iii
(i, ii :iii (ii i`iiii`i i`iii iii iiii iir ~ii iii
14 13
i`iii -iii`ii-i :iiii
i -ii:iiii i`iii i-i
(-ii:ii-ii~iir~ii, i .ii:iiti
i i`i iii`i :ii-i
Policy Resolution
for Promotion of
Petroleum, Chemicals
and Petrochemical
Investment Regions
(PCPIRs)
The application for notification of a PCPIR shall be moved
by the State Government concerned to the nodal Ministry
namely Department of Chemicals & Petrochemicals. The
State Government will attach with its application a Project
Proposal as per format at Annex 2.
DoC&PC would ensure, in consultation with the State
Government, and the central Ministries concerned, that the
proposal is as per this Policy and then place it before the
High Powered Committee for its recommendations.
DoC&PC will place the recommendations of the High
Powered Committee before the Cabinet Committee on
Economic Affairs for decision.
The following guidelines will be kept in view while
considering a PCPIR Proposal:
i) Potential generation of additional economic activity
and future growth, including generation of additional
employment.
ii) Potential investment from domestic and foreign
sources for production of goods & services.
iii) Potential linkages for Petroleum, Chemical and
Petrochemical investment facilities both domestically
and internationally.
PROCEDURE .ii`siii
-ii:ii-ii~iir~ii ii ~ii`i:iiii i i`i ~iii(i :iii`ii ii
:iii (ii iii -i-iiii iii :iiii i -ii:iiii i`iiii :i
iii iiii ii :iii ~iiiiz -i ii .ii-i i ~ii:ii
~iii(i i :iii -ii`iiiii .i:iii :iii iii
i~ii:ii -ii:ii ii :iii i :iii`ii isii -i-iiii i
-ii-ii i :iii :ii`iiii iii i`i .i:iii iii`i i ~ii:ii ti
~ii i`-i r:i i`:i-iii`i i i`i i iiii .ii-i :ii`-ii`i i :i-ii
.i:ii i`iii ii
:iiii i -ii:iiii i`iiii i iiii .ii-i :ii`-ii`i ii
i`:i-iii`ii ii i`iii ti -ii`-i-ii ii ~iiiii iiii :i :iii`ii
:ii`-ii`i i :i-ii iii
-ii:ii-ii~iir~ii .i:iii -i i`iii ii i i`i i`i-ii`ii`ii i`(ii
i`i(ii ii iii -i iii tiii
i) ~ii`ii`ii iiii :iii :ii`ti ~iiiii ii`ii`ii`iii -i
:iiii`ii i.iii i ii`ii -i ii`-
ii) -i(i i :iii~ii i -ii(i i i`i ii i i`i(ii :iiii :i
:iiii`ii i`iii
iii) -iii`ii-i :iiii i -ii:iiii i`iii :ii`iii~ii i i`i
ii i ~iiiii :i -i :iiii`ii :i-ii
16 15
iv) Willingness and commitment of the State Government.
v) Interest of major anchor industry including PSUs.
vi) Present infrastructure linkages to the proposed site,
and estimated cost of required addition/ upgradation.
vii) Land Availability, especially close to port
viii) Port connectivity/port condition (available draft,
existing facilities, natural calamity risk).
ix) Maintenance of ecological balance and sustainable
development in the region and ensure conformity with
Environmental Laws in force.
The Note submitted to the CCEA for approval of a PCPIR
will clearly state the commitments of GoI to the provision of
infrastructure (National highways, Railways, Ports,
Airports, Telecom) in a time bound manner.
Each PCPIR will be notified separately by DoC&PC after
CCEA approval in each case. Each concerned central
Ministry will then prepare detailed project reports, and
obtain financial approvals to the same expeditiously as per
extant guidelines of Ministry of Finance. Department of
C&PC will enter into a Memorandum of Agreement with
the State Government concerned, indicating the respective
commitments, with timelines, of the Central and State
Government, after the PCPIR has been approved by CCEA
and notified by Department of C&PC.
iv) -ii:ii-ii~iir~ii i i`iii:i i ii :iii ii ri i
.ii`ii-ii
v) .i-ii iiii ii i`i i -ii:ii i`-iirii!-iii-i -ii`:i
ii .ii`ii-ii
vi) :ii -i ii-iii ~iiiiii :iiii :i-ii
vii) ii`-i -iiiii i`iii -i :i -iii i i`ii
viii) -iii :i-ii!-iii i:ii`i (-iii .ii-i ii-iii :ii`iii
.iiii`ii ~ii-i(i~ii ii iii,
ix) -iii i:iii riir i-i -i -iii`i:ii :iiii ii
(iiii i :iiii i`iii:i
-ii:ii-ii~iir~ii ii :iiii`i i i`i :ii:iir ii :ii-i i ii -i
~iiiiii :iiii iii ii-iii ii -ii i`i-iii-iii
(:iii i i :i-iii- -i :i iii :iii ii iiii-ii :-i
-i :i ii`iii tiii
.iii -ii:ii-ii~iir~ii ii ii :iiii i -ii:iiii i`iiii (ii
~iii :i ~ii`i:ii`ii i`iii iiii i(-iii :i-ii:ii-ii i :iii
is :iii ~ii ii :iii ii .ii`ii-ii~ii ii (iii t
:iiii i -ii:iiii i`iiii :iii`ii iii :iii i :iii
:i-iiiii ii-ii iii r:i iii`i i ~ii:ii i -ii: -iii ii
iii i`iii iiii i`i:i :iiii i -ii:iiii i`iiii ii
:it-ii`i i -iiii ~ii`i:ii`ii i`iii iiii
18 17
The Management Board will, after notification of the
PCPIR, prepare a detailed master plan using the expert
assistance of a technically qualified consultant. The
consultant will be selected after following a transparent
process. The master plan will consist of a regional
development plan specifying land use for processing and
non-processing areas, as well as technical details regarding
the number and nature of downstream units that may come
up in the PCPIR, based on available feedstock. It will be
prepared in consultation with the anchor tenant, if in place
by then.
The master plan as finalized through the above process,
shall be appraised by the competent authority under the
relevant state law to give it appropriate statutory status.
In case an amendment is required to the concept and design
of the project, as encapsulated in the preliminary project
report submitted by the State Government, the same may
be done in accordance with procedure provided in the State
Law.
Proposals for setting up units in the PCPIR will be granted
approval by the Management Board, or such authority to
which these powers are delegated, after obtaining such
clearances as are necessary. Such clearances and approvals
will be granted within a stipulated period of time, as
prescribed by the concerned state government.
-ii:ii-ii~iir~ii ii ~ii`i:iiii i ii( .iiii ii iiiiii-i :i
(i -ii-ii(iii i i`iiii:itiiii :i i`i:ii -ii: -iii iii
iii -ii-ii(iii ii iii -ii(ii i`ii`i (ii i`iii iiii
-ii: -iii -i i-iii i`iii:i iiiii i`i:i-i .ii:ii`:ii i i
.ii:ii`:ii i-i -i ii`-i -iiii i iii i :iii :iii -ii:ii-ii~iir~ii
-i ~iii iii ii:i-i riirii ii :iii i .iii`i i ii -i
.iii`i i ii -i iiiiii iii iii -ii:ii ii -iiiii i
ii -i iii tiii ii`( ii ii i i ~ii iii t ii -ii:
-iii ii -ii-ii :i iii i`iii ii :iiii t
-iiii iii :i -ii: -iii iii ii i ii( :ii-i .iii`iiii
(ii :iii ii ~ii`ii`ii-i i ~iiii :ii-i .iii`iiii (ii iii
i r:i :iiii`i (i iiii iii`i r:i :i-ii`ii :iii`ii`ii (ii i`-ii
ii
ii`( ii :iii (ii .i:ii .iii`ii -ii`iiiii i`-ii i ~ii:ii
-ii`iiiii i ii:i- i i`iiri -i i`i:ii -ii`iii ii ii -i
ii :i ii ii iiii i .iiiiiii i ~ii-i i`iii iiii iii`t
-ii:ii-ii~iir~ii -i riirii ii :ii-iiii i`i .i:iiii ii .iiii
ii (ii ii i`-i :i .iii`iiii i`i:i-i i iiiiii .iiiiii`ii
tiii i (ii ~iiiii iiii:i .ii-i ii i ii( -iii .i(ii
ii iiii i :iii iiii:i i :iiii`iii :iii`ii ii :iii
(ii i`iiii`i :i-ii:ii-ii i iii -ii ii iiii
2 1 20 19
i`iii -iii`ii-i :iiii
i -ii:iiii i`iii i-i
(-ii:ii-ii~iir~ii, i .ii:iiti
i i`i iii`i :ii-i
Policy Resolution
for Promotion of
Petroleum, Chemicals
and Petrochemical
Investment Regions
(PCPIRs)
Each Management Board will undertake such measures as
it thinks fit for the development, growth, operation and
management of the PCPIR. These measures will include:
i) Preparation and enforcement of the detailed Master
Plan.
ii) Providing the necessary infrastructure within the
PCPIR, either directly or through Developer(s).
iii) Selection of Developer/Co-developers and entering
into concession agreements with them for the
development and maintenance of infrastructure
internal to the PCPIR.
iv) Promotion of investment, both foreign and domestic,
into the PCPIR.
v) Promotion of production within, and exports from,
the PCPIR.
vi) Granting approvals for, and facilitating clearances to
units within the PCPIR.
vii) Review of the functioning and performance of the
PCPIR.
viii) Regulation of levy of user or service charges or fees or
rent for the use of infrastructure / properties in the
PCPIR.
ix) Exercise of authority to delegate, enter into or create
SPVs for specialized services.
x) Any other functions as may be prescribed by the State
Government.
FUNCTIONS OF THE MANAGEMENT BOARD .iiii ii i iii
.iii .iiii ii -ii:ii-ii~iir~ii i i`iii:i i.iii :iiiii i
.iiii i i`i i:i i`ii :i-iiii -ii iii i -ii
i`i-ii`ii`ii t
i) i`i:ii -ii: -iii ii iii iii ~ii iii iii
ii) -ii:ii-ii~iir~ii i iii ~iiiii ii`iii(i .iii ii ii
.iiii ii ii-ii i ii` -itii iiii
iii) ii-ii!iiii-ii ii iiii ~ii -ii:ii-ii~iir~ii i
~i(ii ii`iii(i .ii i iiii ~ii i`iii:i i i`i
ii :ii i`iiii :i-iiii iii
iv) -ii:ii-ii~iir~ii -i ii ~ii i`i(ii i`iii ii i.iii (ii
v) ~iiii`i -ii(i iii -ii:ii-ii~iir~ii :i i`iiii ii
.ii:iiti
vi) -ii:ii-ii~iir~ii i iii ii ii`ii ii -iiiii (ii ~ii
:iiii`iii ii :ii iiiii
vii) -ii:ii-ii~iir~ii i iiiii i iiii`i-ii(i ii :i-iiii
viii) -ii:ii-ii~iir~ii i ii`iii(i .ii!-ii`:i-ii`iii i .iiii i
i`i i`iiii ii ii ii :iii ~iiii .iiiiiii iiii ii
i`ii`i-ii
ix) i`iii :iii~ii i i`i :i-iiiii ii :iii ii ~ii`iii .i(ii
x) ii :iii (ii i`iiii`i ii ~ii iii
22 21
i`iii -iii`ii-i :iiii
i -ii:iiii i`iii i-i
(-ii:ii-ii~iir~ii, i .ii:iiti
i i`i iii`i :ii-i
Policy Resolution
for Promotion of
Petroleum, Chemicals
and Petrochemical
Investment Regions
(PCPIRs)
DEVELOPER AND CO-DEVELOPER
The Developer is a legal entity - Government, private or a
Public Private Partnership- that develops, builds, designs,
organises, promotes, finances, operates, maintains or
manages a part or whole of the infrastructure and other
facilities in the PCPIR. The Developer would be selected by
the State Government/ Management Board through a
transparent mechanism.
The required land within the PCPIR will be made available
to the Developer by the State Government, through the
PCPIR Management Board, by way of a concession.
A Co-developer will be a legal entity- Government, private
or a Public Private Partnership- that assists the developer in
providing infrastructure facilities in the identified area or to
undertake various operations after entering into an
agreement with the developer for providing the same.
The benefits of tax holidays as provided under Section
80(I)(A) of the Income Tax Act for development, operation
and maintenance of power plants, airport, ports, waste
management facilities, water treatment plants, etc. would
be available to the Developer / Co-developers.
i`iii:iiii i ii-ii i-i tiii :iii ii i`iii ii
-ii:ii-ii~iir~ii -i .iiiii :iiii ii -ii ii i`iii:i iii i
iii ii i`i-iii iii i`iiri iiiii ~iiiii`ii iii
.ii:iii`ti iii i`ii -iii iiii :iiiii iii (ii
iii ii i`iii`-ii iii ii :iii!.iiii ii (ii i
-ii(ii i-i i iti i`iii:iiii ii iii i`iii iiii
-ii:ii-ii~iir~ii i i`i i`iii:iiii ii ~iiiii ii`-i ii
:iii (ii -ii:ii-ii~iir~ii .iiii ii i -iii-i :i ~iiii -i
i`(ii iiii
:iti`iii:iiii it riir t ii i`iii:iiii :i :i-iiii -i
t:iii ii i ii( i`iiti i-i i ~iiiiii :iiii :ii`iii
-iii iii i i`ii`ii :iiiii iii ii -i -i(( iii t
~ii-ii(i .iii`iii:it .iiii ii ~iiiii iii ii i i`i
:iti`iii:iiii ii :iii ii i`i~i-i i-i ~iiii`i iii
i`iii:i i`iii :ii-ii i`i-iii-iii -iii ~i-ii`i .iiii
:ii`iii~ii iiiiii :ii-ii ~iii`( i :iiiii i (ii i i`i
~iiii ~ii`ii`ii-i ii iii sc(:,(, i ~iiii i~iiiii ii
iii :iii i`iii:iiii~ii i i`i -iii tiii
i`iii:iiii i :iti`iii:iiii
24 23
i`iii -iii`ii-i :iiii
i -ii:iiii i`iii i-i
(-ii:ii-ii~iir~ii, i .ii:iiti
i i`i iii`i :ii-i
Policy Resolution
for Promotion of
Petroleum, Chemicals
and Petrochemical
Investment Regions
(PCPIRs)
Any chemical or related industry / service that will support
chemical industry in the investment region for
manufacturing, stocking, trading including logistics and
utilities with local linkages, and for which site is available as
per the approved detailed Master Plan, will be eligible for
being set up in the PCPIR, and may apply to the
Management Board in such form as will be specified by the
authority concerned.
The Management Board, or the authority to which such
powers are delegated, will allot sites to units through a
transparent process as specified.
A unit located in PCPIR, whether in SEZ or elsewhere, may
produce / export goods and services except those
prohibited either for manufacture or export under the EXIM
Policy or any other Act in force. Rejects, waste, and scrap
arising out of the production process could be exported or
sold outside the SEZ. Export of Special Chemicals,
Organisms, Materials, Equipment and Technologies
(SCOMET) items would be as per the law in force.
UNITS IN THE PCPIR
i`ii`i-iii iii i`i i`i:i-i iii`ii:i:i i :ii`iii iii`-ii
t :iiiii i`iii i :iii ~ii i`iii i`i i`i:ii -ii: -iii -i
:iiii`i -iii t i ii`-iii ii :iii`ii iii!:iii i`iii i-i
-i -ii:ii-ii~iir~ii i ~iiii iii :iii`-ii ii i i`i -ii-i tii
~ii i .iiii ii i -ii:i :iii`ii .iii`iii (ii i`iiii`i .i-i-i -i
~iii(i ii
.ii ii ii ii : ii ii i iii :i .iiiiii ` ii iir .iii` iii i` iiii ` i
-ii(ii .iis` iii (ii riirii ii :iir ii ~iii i i ii
-ii:ii-ii~iir~ii -i ~iii:ii riir iit it :iri ti ii ~ii
~iiiiii`iiii iii`i ii ~ii i`i:ii iii ~ii`ii`ii-i i ~iiii
i`ii`i-iii ii i`iiii i i`i i`ii`i- -i(i ii ii ~ii
-i(i!:iii~ii ii -ii(i!i`iiii i :iiii t -ii(i .ii`siii :i
-i(i tii iii ~i:iiii ~i-ii`i iiii ii i`iiii ii
ii -i iii ii :iiii t :-iii ii`-ii:i ~iiii`i-i
-ii`ii riii-i-i iiiiiii(:ii-i, -i(i ii i`iiii iii
i`ii`i i ~ii:ii tiii -ii:ii-ii~iir~ii i iii ~ii-ii(i
.iii`iii (ii ~ii-iii`(i riirii ii :iii ii`ii`ii`iii i`i:i-i
i`iiii!-ii~iiiii iii`-ii t ii ii :i.i-iiiiii .ii`siii (ii
iii`:ii!i ~iiii tiii ii ii i`i r:ii i`i ~ii iir iiii
iti ii iiii
-ii:ii-ii~iir~ii -i riirii
26 25
i`iii -iii`ii-i :iiii
i -ii:iiii i`iii i-i
(-ii:ii-ii~iir~ii, i .ii:iiti
i i`i iii`i :ii-i
Policy Resolution
for Promotion of
Petroleum, Chemicals
and Petrochemical
Investment Regions
(PCPIRs)
In case the Developer, or any Co-developer, is unable to discharge
his functions, or violates the terms and conditions of the
concession agreement, the same may be transferred to a new
Developer/Co-developer under terms and conditions to be
provided in the concession agreement between the
Developer/Co-developer and the Management Board.
Any unit that wants to exit out of the PCPIR will be allowed subject
to payment of applicable dues and in compliance with the
agreement with the Management Board in this regard.
The concession agreement(s) executed by the Management Board
with the Developer/Co-developer(s), and the agreements with
the anchor tenant and other units, may contain the condition that
any dispute, difference or controversy of whatever nature arising
under or out of or in relation to any Agreement (including its
interpretation) between the parties in the PCPIR, shall be notified
in writing by either party to the other party and such dispute,
difference or controversy shall, in the first instance be attempted to
be resolved amicably by mutual consultation and if no solution is
arrived after such consultation, the same may be referred to the
International Centre for Alternate Dispute Resolution, New Delhi
or such other rules as may be mutually agreed by the parties, and
shall be subject to the Arbitration and Conciliation Act 1996 and
amendments made thereto from time to time.
This Policy will take effect from the date of its notification. Any
subsequent modification in the Policy will be applied only with
prospective effect.
EXIT OPTIONS
DISPUTE RESOLUTION MECHANISM
MISCELLANEOUS
ii`( i`iii:iiii ~i-iii iii ii .iii :i iti i -iiii t ii :it-ii`i
-i-i i i`ii-i i iii ii iii iii t ii i`iiii -iiiii ii ti
ti i`iii:iiii ii iii :it-ii`i -i-i i i`iii:iiii ii i`(ii ii
:iiii t iii i`i riiii i i`iii:iiii ii i`-ii ii iiiii
~i:i`i r:i -ii ii :ii`iiii iii
ii`( iir riir -ii:ii-ii~iir~ii :i iit i`iiiii iitii t ii :i
~ii-ii`i (i iiii iii i`i it :ii -i -iii ~iiiii`ii i ii
ii`-ii i:i iii -iii i-iii ii-ii:i :-ii:i i iii -iii
-i iii :ii-iiii ii iiiii i ( i`ii`i-iii i i`ii`ii :iii~ii i
i`i -i -i (i ir ii`-i :i iiii iii tiii :ii riirii ii
iii :it-ii`i-i-i i i`(ii iiii
r:i iii`i -i i`iii( :i-iiiii ii .iiiii t r:ii ~ii:ii ii-i!ii
ii-i i :iii .iiii ii i iii t~ii i`iiii ii i ii i
~ii ii`ii i :iii ii -i it ii i`ii`ti ti :iiii t i`i
-ii:ii-ii~iir~ii ii -iii`ii i iii i`i:ii ii (r:iii iiii i`ti, :i
:iii`ii i`i:ii ii .iii i i`iii( ii i`i:ii i -iii (ii ~ii -iii ii
i`ii`ii -i ~ii`i:ii`ii i`iii iiii ~ii :i i`iii( ii -iii( ii -iti
-i:-ii`i iiiiii i ii` :iiiii ii .iii:i i`iii iiii ~ii ii`(
:ii iiiiii i ii( ii iir :i-iiiii iti i`iii -iiii ii r:i
riiii :i -ii ~ii i`:-i i`iiiiii ir i`(ii iii
iiii ~ii it -ii:iii ~ii :i-iiiii ~ii`ii`ii-i :s ~ii :i-ii
:i-ii -i :i-i i`i i :iiiiii i ~iiii tiii
it iii`i ~ii`i:iiii ii i`ii`i :i .iiiii tiii iii`i -i i`i:ii .iii
ii :iiiii iii :iiii`ii .iiii :i iii tiii
-ii:ii-ii~iir~ii ii ii i`ii-i
i`iii( i`i-iii i-i
i`ii`ii
28 27
i`iii -iii`ii-i :iiii
i -ii:iiii i`iii i-i
(-ii:ii-ii~iir~ii, i .ii:iiti
i i`i iii`i :ii-i
Policy Resolution
for Promotion of
Petroleum, Chemicals
and Petrochemical
Investment Regions
(PCPIRs)
Government of India will constitute a High Powered
Committee (HPC) with the following composition:
i) Cabinet Secretary .Chairman
ii) Member Secretary, Planning Commission
iii) Secretary, Ministry of Petroleum & Natural Gas
iv) Secretary, Department of Commerce
v) Secretary, Department of Industrial Policy &
Promotion
vi) Secretary, Department of Revenue
vii) Secretary, Department of Expenditure
viii) Secretary, Department of Economic Affairs
ix) Member Traffic, Railway Board, Ministry of Railways
x) Secretary, Ministry of Shipping
xi) Secretary, Road Transport and Highways
xii) Secretary, Ministry of Civil Aviation
xiii) Secretary, Ministry of Environment & Forests
xiv) Secretary, Ministry of Labour & Employment
xv) Sec r et ar y, Depar t ment of Chemi c al s &
Petrochemicals..Convenor
The Committee may co-opt any other member as required.
Chief Secretaries of the State Governments concerned may
be invited to the meetings of the Committee as required.
HIGH POWERED COMMITTEE
iii :iii i i iiii .ii-i :ii`-ii`i (i-ii:ii, ii ii
iii i`i:iii :iiii i`i-i .iii tiii
i) -ii`-i-ii :ii`ii ~iii
ii) :i(:i :ii`ii iiiii ~iiiii
iii) :ii`ii -iii`ii-i i .iiii`ii i:i
iv) :ii`ii iii`ii i`iiii
v) :ii`ii ~iiiii`ii iii`i i .ii:iiti i`iiii
vi) :ii`ii ii:i i`iiii
vii) :ii`ii ii i`iiii
viii) :ii`ii ~iiiii -ii-ii i`iiii
ix) iiiiiii :i(:i ii ii i -i-iiii
x) :ii`ii itiiiii -i-iiii
xi) :ii`ii :ii -ii`iti i ii-iii
xii) :ii`ii iiii`i ii -i-iiii
xiii) :ii`ii -iiiii i ii -i-iiii
xiv) :ii`ii ~i-i i iiii -i-iiii
xv) :ii`ii :iiii i -ii:iiii i`iiii :iiiii
:ii`-ii`i ii ii ~iiiiiii tiii i`i:ii ~ii :i(:i ii i :iiii
t :ii`-ii`i ii ii -i ii ii ~iiiiiii tiii :iii`ii ii
:iii i -ii :ii`iii ii ~ii-ii`-ii i`iii ii :iiii t
i iiii .ii-i :ii`-ii`i
Annex 1
~iiiii :
30 29
i`iii -iii`ii-i :iiii
i -ii:iiii i`iii i-i
(-ii:ii-ii~iir~ii, i .ii:iiti
i i`i iii`i :ii-i
Policy Resolution
for Promotion of
Petroleum, Chemicals
and Petrochemical
Investment Regions
(PCPIRs)
Format for Project Proposal
The Project Proposal to be provided by the State
Government, alongwith its application to the Department
of Chemicals and Petrochemicals, GOI for setting up a
PCPIR will include, inter alia, the following information:
i) The legal framework in the State under which the PCPIR is
proposed to be formed, including whether this would be
under an existing Act or under a new legislation to be
enacted for this purpose.
ii) The location alongwith demarcation of the identified area
with map and clearly identifiable landmarks.
iii) The total area of the proposed PCPIR, with the proposed
zoning plan indicating the Processing area & non-
processing area to include:
Processing Area
a) Total area, with location/demarcation on map.
b) Existing units and vacant land available.
c) Land acquired and proposed to be acquired.
d) The existing and proposed processing activities in the
PCPIR.
e) The feedstock required for the anchor unit(s), with its
source and availability.
Non-processing area
a) identified areas with location/demarcation on map.
b) existing and proposed availability of basic and social
infrastructure, trained manpower, educational
institutions and training facilities etc.
iv) Whether the state government has identified
-ii`iiiii .i:iii ii .ii-i
-ii:ii-ii~iir~ii ii :ii-iii i i`i ~iii(i i :iii ii :iii
(ii -iii ii i -ii`iiiii .i:iii -i ~ii iiii i :iii
:iii i`i-ii`ii`ii :iiii tiii
i) ii -i i`ii`ii -iii i`i:ii ~iiii -ii:ii-ii~iir~ii ii ii
.i:iii`ii t i`i:i-i iii`-ii t i`i iii it ii-iii ~ii`ii`ii-i i
~iiii tiii ii r:i i i i`i iir iii iiii iiiii iiii

ii) iiii i :i:-i i`iiii i :iii i`iiti i-i -i :iii ii i`iii

iii) .i:iii`ii -ii:ii-ii~iir~ii ii ii i-i i`i:ii :iii .ii:ii`:ii i-i
i iii.ii:ii`:ii i-i iiii t .i:iii`ii iii`ii -iii tiii
iii`t
.ii:ii`:ii i-i
i. ii i-i iiii -i :iii!i`iti
i. ii-iii riirii i -iii iiii :iii
i. ~iiii ii`-i i ~iiii ii i i`i .i:iii`ii
i. -ii:ii-ii~iir~ii -i ii-iii i .i:iii`ii .ii:ii`:ii ii`ii`ii`iii
. i riir(ii, i i`i ~iiiii -ii :ii :ii :iii i
-iiiii i :iii
Annex 2
~iiiii z
32 31
Annex 2
~iiiii z
a) An anchor tenant; if so, the proposed investment plan
of the anchor tenant, if available;
b) Developer(s).
(Note: Details of the procedure adopted/ proposed to
ensure transparency in the selection of Developer(s) may
also be provided.)
v) The time frame by which a detailed Master Plan would be
formulated and adopted.
vi) A rapid Environmental Impact Assessment (EIA) report.
vii) Estimated potential for generation of additional economic
activity and future growth, including potential investment
from domestic and foreign sources.
viii) Existing and proposed infrastructure for external linkages,
including rail, road, port, airport and telecom, as well as
infrastructure such as power, water as per manual on water
supply norms and details of cost sharing with local bodies,
if any and effluent disposal as per CPCB norms to be
provided upto and within the PCPIR location.
ix) Financial aspects of the proposal, including source, mode of
financing the project and assessment of viability of the
project.
x) Proposed management structure of PCPIR including the
administrative, regulatory and development functions; the
nodal department/officer of the state government may also
be indicated.
xi) The commitment of the state government in providing/
upgrading basic infrastructure in PCPIR and the cost
estimates of the same.
xii) The external linkages for which support is required from
the Central Government, and their tentative costs.
iii .ii:ii`:ii i-i
i. i`iitii i-i iii -i :iii!i`iti i :iii
i. ii-iii i .i:iii`ii -ii i :ii-iii`ii ~iiiiii :iiii
.ii`ii`ii -iiii :i:iiii iii`ii :i:iii i .ii`iii
:ii`iii ~iii`(
iv) iii ii i i`i-ii`ii`ii i`iitii i i`iii t
i. i i, ii`( ti ii ii`( -iii ti ii i i ii
.i:iii`ii i`iii iiiii
i. i`iii:iiii(~ii,
ii i`iii:iiii(~ii, i iii -i -ii(iiii :ii`iiii ii i`i
~i-iiir iii iiii!.i:iii`ii .ii`siii ii i`iii ii -iii
iiii ii
v) i`i:ii -ii: -iii iii ii i ~i-iiii i i`i :i-ii :ii-ii
vi) i ii`i -iiiii .iii i`iiii (r~ii, i`-ii
vii) ~ii`ii`ii ~iiiii ii`ii`ii`i i.i ii :iiiiii i ii`ii -i ii`-
ii ~iiiii i`i:i-i ii i i`i(ii :iiii :i :iiii`ii i`iii
iii`-ii ti
viii) iiti i`iii i`i:i-i i i -ii i-ii i (:iii iii`-ii
t i :iii:iii ~iiiiii :iiii i:i i`iii ii i ~i-ii`i
i`i-iii i i`i -ii:ii-ii~iir~ii -i i r:ii iii ti -iii
ii-iii i .i:iii`ii ~iiiiii :iiii
34 33
~iiiii z
ix) .i:iii i i`iiii -ii i`i:i-i :iii -ii`iiiii ii i`ii -iii
iii ii iiii i -ii`iiiii i iitiiii ii i`iiii
x) -ii:ii-ii~iir~ii ii .i:iii`ii .iiii :iiii i`i:i-i .iii:ii`ii
i`ii-ii i i`iii:i iii, ii :iii i ii i
i`iiii!~ii`iiii ii ri`ii i`i ii :iii t
xi) -ii:ii-ii~iir~ii -i -iiii .iiiii :iiii -iii iii!ii
iii i :i -i ~iii iiii ~ii-iii`ii iiii i .ii`i ii
:iii ii iiii-ii
xii) iiti i`iii i`i:ii i`i is :iii :i :itiiii iii`t i
iii :iiii`ii iiii

35