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What happened to Bihar’s PCPIR Plan?
By D N Mishra
Aug. 4, 2008 |
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Going by
the various presentations hosted by the
industries department on its website and
statements made by the honorable chief minister
from time to time, one would have expected a
proposal for Petroleum, Chemical and
Petrochemical Investment Region (PCPIR) being
made by the state government to union chemical &
fertilizer ministry. And why not this be the
case when Bihar’s economic need warrants so and
the state also has a choice available in form of
a core region at Barauni. To my utter
disappointed, the same has not happened so far.
Ministry of Chemical and Fertilizer has already
received proposals from six states but not one
from Bihar. Further processing of those
proposals is underway with the guardian ministry
now.
Bihar seemingly made a strong case for a PCPIR
region, initially, as evidenced in a letter
addressed to prime minister by the hon’ble Chief
Minister. This happened in aftermath of the
refusal of its demand for a Petrochemical
complex at Barauni by ministry of petroleum on
techno-economic ground. Agreed, if someone were
to look for such justification one would not
have expected ministry to push ONGC into
Kakinada refinery when the company itself
resisted the same (now, off course, ONGC is
exiting after another re-look of the same). And
then there is story of the biggest scam of all
time called Dabhol which public sector companies
are being asked to revive and run. It is quite
difficult to understand how come coal based
power projects other than one at the pit top can
make the grade on economic considerations. Some
one has got to explain how come power plants are
coming up at the distant location even when
linked to the domestic coal supplies. Also metal
industries are often coming up at places which
are quite far away from the sources of the raw
material? Wasn’t it because of the economically
nonsensical decision of freight equalization
followed in the past? Well, when one has got to
justify some action a reason is invented
accordingly and that is what ministry of
petroleum has been doing till now.
Take for example the policy for NHDP roads.
Maximum length (3100KM) has been approved for
Tamil Nadu. Going by the policy framed in
regards to approval, one struggle to find a
justification for the same. I don’t know if TN
has more need of Inter state connectivity and
international connectivity or has more places of
tourist or economic importance than any other
large state of India. Compare the same with
Bihar has NHDP approval only for approx.1750 Km
NH length (there to, work is yet to start on
NHDP III portion).
If one were to go by the economic justifications
only, central government could have found better
value for its money than the controversial
Sethu-Samundaram project, for funding as a
National Project. It should not have ventured to
invest over Rs 2500 crores on a project which is
having only state level importance. It should
have rather asked TN government to invest (off
course, subject to resolution of other linked
controversies) in the same on its own.
Fortunately for Bihar, there are some positive
developments at the central administration
level. Mr RS Pandey has now taken charge as the
petroleum secretary and one can expect some
sympathetic consideration from him in the matter
of petroleum complex at Barauni. Moreover, Dr U
D Choubey is heading GAIL and can be approached
to expedite the Gas Pipeline Grid in Bihar. At
least, he can expedite the
Haldiya-Gaya-Jagadishpur (HGJ) pipeline, which
is already approved by the CCEA, and can also be
requested to provide a spur link to Barauni for
making the PCPIR feasible and a reality. As I
gather ministry of Petroleum has earlier made
commencement of work on HGJ dependent on surplus
availability of Gas from KG basin
field when an enquiry was made by Ministry of
Chemical & Fertilizers in relation to revival of
Barauni fertilizer factory. In fact this was
just another ploy by the vested regional
interests to put brake on the revival plan of
Barauni fertilizer.
Gaurdian Minister for PCPIR is, off course, Mr
Paswan and the PCPIR cell is headed by Joint
Sec, an IAS of Bihar cadre. Pharmaceutical
Secretary is also from Bihar cadre and can come
in handy in strengthening Barauni cluster
through a pharmaceutical industry component,
which can also be done by an expansion of IDPL
Muzaffarpur to Barauni. With emerging ethanol
industry in the state this location emerges as
strong contender for PCPIR. De facto foundation
of PCPIR can be laid just by establishing a
petrochemical complex, a pharmaceutical unit,
revival of fertilizer unit along with the
illusive gas grid connectivity.
It would be needless to repeat that Cabinet and
CCEA have got the strongest voice from Bihar
just now. It is time to move on the pending
proposals afresh.
So shall we expect the Gas Grid, City Piped Gas
Distribution and a PCPIR in Bihar now?.
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