AP CM met with HPCL and GAIL

This Tuesday evening, senior officials from HPCL and GAIL presented a requirement of Viability Gap Funding (VGF) in a meeting with the Chief Minister. In view of the upcoming GST regime, the Chief Minister has asked HPCL and GAIL to work out the tax incidence between the State and Central Government, re-work on the feasibility and come back for a discussion in 10 days.

Among the officials present in the meeting, B.C. Tripathi, the Chairman and Managing Director of GAIL (India) Limited also spoke, as they presented a Preliminary Project Feasibility Report and the product configuration for the set up of their petro-chemical complex in Kakinada, East Godavari district.

This presentation included Financial Feasibility, details of the sourcing of the input chemicals (ethane, propene and naphthene) and tentative plans for the import of chemicals through the ports Kakinada Sea Ports Limited (KSPL) or Kakinada Special Economic Zone Port (KSEZP).

The cost of the petro-chemical complex will be ₹37,000 crore, and it will generate direct employment of around 1000 and indirect employment of 30,000.

Pre-project activities like environmental clearance, licensor selection, topographical survey, route and pipeline survey (for the injection of ethane, raw water etc.) were also discussed as a part of the presentation prepared for the Chief Minister.