Gail and HPCP entered into MoU ₹37,000 crore

Published on June 12, 2018

Uncertainty pertains over petrochemical plant in Andhra Pradesh.

Public sector majors Gas Authority of India Limited (GAIL) and the Hindustan Petroleum Corporation Limited (HPCL) together with the State government had entered into a Memorandum of Understanding (MoU) to establish the ₹37,000 crore project of the 1.5 million tonne ethylene derivative plant.

The project is expected to provide direct employment to 1,000 and indirect jobs to about 30,000 people. Since the Kakinada coast is known for having hydrocarbon reserves and oil and gas infrastructure, it has become the obvious choice for the promoters and to the State government as well. Though the works are supposed to have been commenced long back, no such activity is visible at the project site and all the officials concerned remained tight-lipped. Viability Gap Funding to the tune of about ₹5,500 crore is said to be the solution to clear the issue, for which Mr. Naidu sought the Petroleum Ministry’ support in February this year and got a negative response.

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