Prime Minister of India - Dr. Manmohan Singh

PM constitutes Task Force on Petroleum, Chemicals and Petrochemicals Investment regions

The Prime Minister, Dr. Manmohan Singh, has constituted a Task Force on Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR), for quick and coordinated decision making and to provide an appropriate policy framework for the development of investment regions of requisite scale and level of facilities, with the involvement of world class developers and investors, in the fields of petroleum, chemicals and petrochemicals.

The Task Force has been notified on January 20, 2006 with the Principal Secretary to Prime Minister as the Chairman. The members of the Task Force are :

(i) Member Secretary, Planning Commission

(ii) Secretary, Department of Chemicals and Petrochemicals

(iii) Secretary, Ministry of Petroleum and Natural Gas

(iv) Secretary, Department of Industrial Policy & Promotion

(v) Secretary, Department of Commerce

(vi) Secretary, Department of Economic Affairs

(vii) Secretary, Department of Revenue

(viii) Chief Secretaries of the States concerned

(ix) A Representative of the NRI Task Force.

Chairman, Railway Board and Secretaries of the Department of Shipping, Department of Road Transport and Highways, Department of Civil Aviation, Ministry of Power, Ministry of Environment and Forests and Ministry of Labour will be special invitees. The Task Force may associate any other person(s), including experts/professional agencies, in the course of its deliberations.

The Task Force will undertake the following activities:

(i) Identify, in consultation with interested state governments, the site (s)for the proposed PCPIRs.

(ii) Examine existing government policies and move for adoption of such policies/ measures, including in the area of feedstock policy and related issues of availability, pricing, etc., and special incentives, as are considered necessary.

(iii) Expedite the necessary clearances, upgradation/connectivity, including the following:

(a) SEZ clearance for the designated area within the Investment Region

(b) National Highway connectivity

(c) Railway connectivity

(d) Upgradation of the nearest airport

(e) Upgradation of the nearest port

(f) Various environmental clearances

(g) FIPB clearances

(h) Other statutory clearances

(iv)Monitor progress and coordinate with the State Governments and the NRI Team.

(v) Any other activity considered necessary.

The State Government(s) concerned would lead the task of setting up the PCPIR. The Task Force would assist, expedite and monitor the various activities involved, including preparation of master plan; identification of developers and anchor investors; development of a disaster management plan; single window clearance for necessary state level approvals and appointment of an empowered CEO and constitution of project specific teams.

Background - During the Prime Minister's first visit to the United States in September 2004, the Prime Minister had requested Shri Victor J. Menezes of Citigroup to form a group of NRIs to study the investment climate in India and suggest initiatives to substantially enhance FDI. The group submitted a report called India-FDI Initiative. Taking the concept outlined in its report further and following up on its meeting with the Prime Minister on his visit to the United States in July 2005, the NRI Task Force organized a Chemical & Petrochemical Investment Regions Roundtable in December 2005 in New Delhi. The Roundtable brought together representatives from the Department of Chemicals and Petrochemicals and other agencies of Government of India, state governments and the major international investors. The Task Force made out a case for promoting Investment Regions over large areas of 2500 to 25000 acres,in order to ensure participation of world class developers. Chemicals and Petrochemicals was identified by the Task Force as a focus area on account of the growing domestic demand and potential for large investment and employment.