K`taka set to scrap Rs 30000-crore petrochemical investment region

Tag : and petrochemicals

The derailment of this project that Karnataka was eyeing for long,comes after the top brass in the government felt that the PCPIR,which will require huge tracts of land, may cause a Nandigram' inthe state's coastal districts of Dakshina Kannada and Udupi  theparty's stronghold.
A final decision to this effect is likely to be taken in the nextcabinet meeting and subsequently, a formal request will be made tothe Centre seeking the withdrawal of this project.
" project of this magnitude requires a huge amount of land. It willdisrupt normal life in the two districts and there could be law andorder problems. It is for these reasons we plan to request theCentre to take out the PCPIR project," home minister and Udupidistrict in-charge minister VS Acharya reasoned.
Touted as one of the mega projects in the country's petrochemicalsector, the PCPIR was conceived as a specifically delineatedinvestment region with an area of around 300 sq km (covering over90,000 acres) in the four taluks of Mangalore, Bantwal, Udupi andKarkala on the coastline. According to the blueprint, the projectwas to be rolled out in three phases between 2008 and 2010.
The PCPIR was to house manufacturing facilities for domestic andexport-led production in petrochemicals along with associatedservices and infrastructure. The project was expected to drawinvestments to the tune of Rs 2.31 lakh crore. It was estimated toprovide direct employment to 230,000 people and indirect employmentto 430,000 people.
The project, which was to come near Mangalore Refinery andPetrochemicals Limited (MRPL), was going to include the Mangalorespecial economic zone (SEZ), New Mangalore port and Mangaloreairport.
The Karnataka government, which had to compete with Gujarat, AndhraPradesh, Orissa and West Bengal for the PCPIR, managed to get agreen signal from the Centre only last month. The Centre suggestedthe state to launch a special purpose vehicle (SPV) to oversee theproject by expediting land acquisition.
The BJP which has come to power for the first time in the state,does not want to get its arithmetics wrong.
" since we came to power in the state, we have been spendingsleepless nights because of the farmers' unrest over shortage offertilisers and resentment among the middle-class over risingprices. Parliamentary elections are approaching and if we now talkabout taking away people's land, it is like shooting ourselves inthe foot," a senior BJP leader close to Chief Minister BSYeddyurappa and party's state president DV Sadananda Gowda said.
The PCPIR is turning to be a cause for concern for the BJP as theproject is scheduled to come up in a region where the party isstruggling hard to consolidate its vote-base.
Pointing to the results of the recently concluded assemblyelections, the BJP leader said: " Dakshina Kannada district wherethe PCPIR is supposed to be located, we managed to win only fourout of the eight seats. Popular outrage against the project willonly mar our harvest at the hustings. So, our priority is toreassure people that their lives will not be jeopardised."