Huge investments in oil and gas sectors in A.P.: Pradhan

BJP leaders greeting Union Petroleum Minister Dharmendra Pradhan during his transit halt in Visakhapatnam on Monday.

BJP leaders greeting Union Petroleum Minister Dharmendra Pradhan during his transit halt in Visakhapatnam on Monday.   | Photo Credit: arranged

Brushes aside criticism that the Centre is neglecting the Sunrise State

Union Minister for Petroleum and Natural Gas Dharmendra Pradhan has rubbished criticism by the TDP and other parties over alleged negligence of Andhra Pradesh, and said an investment of over ₹1.65 lakh crore is being made to produce gas of 50 million cubic metres per day from the Krishna Godavri (KG) basin, set up petrochemical complex at Kakinada, and double the capacity of the HPCL Visakh Refinery.

After visiting the KG basin near Kakinada and the LPG cavern facility here, he told The Hindu in an exclusive interview that Andhra Pradesh had a special place in the heart of Prime Minister Narendra Modi, and they were fully committed to implementing all the promises made in the A.P. Reorganisation Act, 2014.

‘Only to gain cheap mileage, some parties are making an issue out of nothing,” he said.

Petrochemical complex

Stating that Sunrise A.P. was attracting an investment of ₹60,000 crore from the ONGC in the K-G basin. Reliance Industries Ltd-BP joint venture was committed to investing ₹40,000 crore.

“According to conservative estimates, gas of at least 50 million cubic metres per day will be produced by 2022,” he said.

Mr. Pradhan said, as per the promise made in the Act, they would set up a petrochemical complex at Kakinada with an investment of ₹43,000 crore. The Visakh Refinery of HPCL was undergoing capacity expansion from 8.3 million tonne to 15 million tonne at a cost of over ₹20,000 crore, he added.

The Minister said the Indian Institute of Petroleum Energy (IIPE) had started functioning in Visakhapatnam with recognition as a premier institute on par with IITs.

For viability gap funding to the tune of ₹5,000 crore, they were in talks with the officials of A.P.

‘Boost to local economy’

“Nowhere in the world such huge investments of ₹1.65 lakh crore in the oil and gas sector is being made over a period of four to five years,” he said, declaring that the projects, once completed, would have a positive effect on the local economy in the terms of creating jobs and new avenues for supply chain management, logistics, service, tourism, and other sectors.

Declaring that the TDP had its own “political problems,” he said the BJP’s commitment towards A.P. would be fulfilled, notwithstanding the fact that their alliance partner had walked out of the NDA.