Oil PSU’s to invest over Rs. 1.4 lakh crore in AP: Pradhan

The Dollar Business Bureau 

Petroleum and Natural Gas Minister Dharmendra Pradhan said on Friday that key oil public sector units (PSUs) are planning to do investments of more than Rs.1.43 lakh crore in Andhra Pradesh in the next few years which would generate thousands of jobs in the state.

The Minister said that investment will begin from the financial year 2017-18 and the entire investment will be finished by 2021-22. 

Andhra Pradesh has huge potential in hydrocarbons and in the coming years the state is going to become the main petrochemical and petroleum hub, Pradhan stressed at the Partnership Summit organised by CII. 

“Our oil PSUs are partnering with Andhra Pradesh to build new synergies in the hydrocarbon sector. The oil PSUs have invested more than Rs.9,400 crore in the last two and a half years and have plans to investment more than Rs.1.43 lakh crore in the state in the coming years,” he said. 

The minister also said that around $20 billion is to be invested in the KG basin by public as well as private sector enterprises. “In the present scenario, the KG basin is world’s most active area. Huge investments are happening in the deep sea projects, he said.

“An investment of Rs.78,000 crore by ONGC will create 3,000 direct and thousands of indirect jobs in the state. It will also attract global companies such as Schlumberger. These companies will function from the state,” he added. The minister also informed that HPCL and GAIL are jointly building a petrochemical unit in Kakinada.

The country’s first strategic oil reserve storage unit is in Visakhapatnam, with a 1.33 million tonnes of storage capacity. In order to ensure gas supply in the long-term, GAIL and government of Andhra Pradesh are developing an LNG terminal with a capacity of 3.5 million tonnes with an investment of Rs.2,500 crore in Kakinada. 

Pradhan also informed that he has invited investors from the UAE to invest in the Kakinada petrochemical project and they have been sounding positive on this proposal.