PETROLEUM, CHEMICAL & PETROCHEMICAL INVESTMENT REGION: VISAKHAPATNAM - KAKINADA CORRIDOR

Government of Andhra Pradesh

Andhra Pradesh Industrial Infrastructure Corporation Ltd.

AP PCPIR

PCPIR CONCEPT

! Petroleum, Chemical & Petrochemical Investment Region

! Initiative of GoI (Dept of Chemicals & Petrochemicals)

! PCPIR Policy released in May 2007

! Specifically delineated Investment Region of ~ 250 sq. km

! Manufacturing facilities for domestic & export led production in petroleum, chemical & petrochemicalsectors with associated services & infrastructure

! Minimum processing area: 40% (~ 100 sq. km)

! May include SEZs, Industrial Parks, FTW Zones, Export Oriented Units or Growth Centres

! Anchor Tenant: Refinery / Petrochemical Feedstock Company

! Central & State Govt. to provide external linkages

LOCATION

VISAKHAPATNAM

KAKINADAKG BASIN

• Industrial Corridor between Visakhapatnam & Kakinada (140 km)

• Abutting Krishna-Godavari Natural Gas Basin (KG Basin)

• Excellent connectivity (sea, air, road, rail)

STRATEGICALLY LOCATED

…. Easy Access to Domestic & Global Markets

Pune Kakinada

VisakhapatnamPort to Port Distance of Key Markets from proposed Site –In No of Days

Singapore 5

Tokyo 16

Hamburg 27

Rotterdam 27

Dubai 9

Shanghai 14

Boston 32

Colombo 3

Houston 37

EASTWARD SHIFT OF GLOBAL CHEMICAL / PETROCHEMICAL MARKETS: CHINA & INDIA

STRATEGICALLY LOCATED

Chennai & its HinterlandAuto & Auto AncillaryPaint

Tirupur: Textile & Apparel

Hyderabad: Pharma & Biotech

Mumbai & Pune: Chemicals, Paints & Automobiles

Kolkata: Major Industrial Base

Visakhapatnam’s Proximity to Major Points of Demand: • Solvents• Paints• Plastics & Fibre• Auto Components• Dyes• Agrochemicals

Visakhapatnam -Kakinada

…. Large Domestic Market Hinterland

Hyderabad (650 km) Pharma & BiotechMumbai (1361 km) Pharma & PaintsChennai (810 km) Auto & Auto Ancillary

PaintsPune (1198 km) Paints & Automobiles

Proximity to Major Points of Demand:

Proximate to Mahanadi Coal FieldsMajor Power

Plants planned in Pvt Sector in the vicinity

Notified SEZs in PCPIR! 5 SEZs within AP PCPIR - 7,203 ha/17,800 ac

(Notified area - 4,007 ha/9,900 ac)

• Ramky SEZ(Phamaceutical)

• Notified Area: 243 ha• Developer: Private

• Brandix SEZ(Textile & Apparel)

• Notified: 405 ha• Developer: Private

• Andhra Pradesh SEZ(Multi Product)

• Notified Area: 2226 ha• Developer: APIIC

• Hetero Drugs SEZ(Pharmaceutical)

• Notified Area: 101 ha• Developer: Private

• Kakinada SEZ(Multi Product)

• Total Area: 4249 ha• Notified Area: 1052 ha• Developer: Private

INFRASTRUCTUREDEVELOPMENT

VISAKHAPATNAM PORTUpgradation for handling PCPIR cargo

GANGAVARAM PORTALL WEATHER GREENFIELD PORT - Phase I in 2008

Proposed (Mutyalammapalem)

• Dedicated Liquid Cargo Handling Facility

• SPM for HPCL for PCPIRby Gangavaram Port

PROPOSED DEDICATED PORTFOR KAKINADA SEZ (at Kona)27 MMTPA capacity

KAKINADA DEEP WATER PORTMaster Plan upgradation for handling PCPIR cargo

PORTS! Funding as PPP projects: Rs. 3600 crores

PORTS Cost(Rs. crore)

Upgradation of Visakhapatnam Port 1950Upgradation of Kakinada Deep Water Port 1650

TOTAL 3600

AP PCPIR

Road Connectivity

• NH-5: Chennai -Kolkata

• Upgraded to 4 lanes

• Visakhapatnam -Rajahmundry stretch to be 6 laned under NHDP Phase V

AP PCPIR abuts GQ

138 km NEW ROAD cum PIPELINECOASTAL CORRIDOR

Gangavaram Port to Kakinada Port6/8 lane

NATIONAL HIGHWAY 5GOLDEN QUADRILATERAL

4 to 6 Lane Upgradation

STATE HIGHWAY 972 to 4 Lane Upgradation Connector to Vizag City

NATIONAL HIGHWAY 2144/6 lane upgradation

ADB ROAD: Connector from Port to NH54/6 lane upgradation

Arterial Road Network

GoAP Funded Road

GoI Funded Road

Other access links fromNH / SH to PCPIR shall be provided by GoAP

KATHIPUDI

NH-214

NH-5

VISAKHAPATNAM

KAKINADA

! Corridor Components! Roads (8 lane)! Pipeline (product & utilities)! Rail (Gangavaram Port to APSEZ)

! Development Phasing! Immediate Phase - 6 lane! Future - 6 to 8 lane

Coastal Corridor (138 km)! Logistics Corridor - 138 km

! Existing Road - 57.6 km (only 1-2 lane)! Greenfield - 80.4 km

CHENNAI - HOWRAH TRUNK LINESOUTH CENTRAL RAILWAY

APSEZ -Gangavaram Port

SCR Trunk Line -AP PCPIR

SCR Trunk Line -AP PCPIR

RAIL FREIGHT STATIONS

LOGISTICS HUBS

RAIL NETWORK

Gangavaram Port - SCR Trunk Line(GPL has invested Rs. 30 crores)

Airports

VISAKHAPATNAM AIRPORTRs. 300 crore upgradation:• New 10000 ft runway• New terminal building • Night landing facilities commenced from 30.03.2008

PROPOSED NEW INTERNATIONAL VISAKHAPATNAM AIRPORT

PROPOSED CAPTIVE AIRPORT & AIRCARGO TERMINAL

RAJAHMUNDRY AIRPORTUpgradation plans:• Expansion of runway• New terminal building - by mid 2010• Night landing facilities

Greenfield Airport at Visakhapatnam:• Site Selection Study completed by AAI - at S. Rayavaram• Techno-Economic Feasibility Study initiated

Environmental Management Plan! Guidelines issued by MoEF in 14 Sept 2006 and CRZ norms

will be adopted

! Environmental clearance obtained from MoEF for the following components of Phase I PCPIR

! Pharma City & SEZ! Brandix SEZ! Hetero Drugs Pharma SEZ! Gangavaram Port! ISPRL Cavern for Crude Oil

! ToR approved by MoEF for APSEZ in Nov 2007; EIA Studies initiated by L&T-RAMBOLL

! EIA Studies initiated for Kakinada SEZ and its Captive Port

! Identified GTZ-Germany as Technical Partner for Environmental Mgmt

! Land being allotted to Sembcorp (Singapore) for environmental management utilities in APSEZ

TO SUM UP...

! Strategic location - Both for Domestic and Global markets

! Feedstock - 3 Refineries with total capacity of 45 MMTPA

HPCL Refinery + Petrochemical ComplexONGC Refinery + Polypropylene UnitKG Basin Gas

! Land - Over 48,800 acres i.e. 73% of processing area already in possession - including 5 SEZs

! Connectivity - 4 ports, 2 airports, linked by National Highway Golden Quadrilateral project

! Legal framework - PCPIR Development Authority under AP UrbanAreas (Development) Act 1975

! Environmental Mgmt - Advisory Services & Emergency Response System by GTZ-Germany; TSDF at PharmaCity; Environmental utilities by Sembcorp-Singapore

..…..… FuellingFuelling GrowthGrowth