The Ministry of Petroleum and Natural Gas has held talks between Union Minister for Petroleum and Natural Gas Dharmendra Pradhan and Industry Minister Mekapati Goutham Reddy. a working group chaired by the Joint Secretary (Refineries) set up a petrochemical cracker complex in Kakinada on Wednesday in New Delhi.
According to an official statement, the ministry has advised Engineers India Limited and SBI Caps to revise their financial data in light of recent regulatory changes in corporate tax and interest rates in order to move the strategic project forward.
Indian Oil Corporation or Hindustan Petroleum Corporation should examine the feasibility of a crude oil refinery and greenfield petrochemical complex in the state within six months from the agreed date in accordance with Section 93 (4) of the Andhra Pradesh (AP) Reorganization Act, 2014.
Accordingly, the HPCL-GAIL consortium has made the feasibility of building a 1 MMTPA cracker complex in Kakinada with an investment of .32,900 crore and has sought the support of the Andhra Pradesh government in the form of Viability Gap Funding (VGF).
Mr Goutham Reddy expressed the opinion that the project would be feasible without any VGF due to a reduction in corporate taxes and a worldwide drop in interest rates, claiming that the cracker complex is an important contributor to the prime minister’s vision of $ 5 trillion would economy.
Mr. Pradhan promised to expand all support for setting up the project. Ministerial Secretary Tarun Kapoor and Andhra Pradesh’s Chief Secretary Aditya Nath Das and the Special Chief Secretary (Industry and Trade) R. Karikal Valaven were present at the deliberations.