Andhra has the edge over Bengal

HYDERABAD: A "chemical warfare" between Andhra Pradesh and West Bengal is on in the corridors of power in New Delhi these days. Gujarat has also joined the battle but not so seriously. At stake is the establishment of a mega chemical industrial estate where investments for world class chemical plants can be attracted. The estate would also be a special economic zone.
Andhra Pradesh has offered Visakhapatnam as a possible site for the estate, against which West Bengal is pushing Haldia.Right now, AP has the edge, although West Bengal was better placed sometime ago. The Union government is the prime mover and initiator for the project which was conceived three years ago.
"The central government found that in the post-liberalisation period 1991-2002, 18.3 per cent of all investments went into the chemical sector. This gave rise to the idea that probably a more concerted effort could get in more of such investments, especially from overseas,"said an analyst. In the early part of 2004, the central government appointed a consultant to prepare a project report and began to shortlist states where this mega industrial estate could be located. With globalisation and exports being the buzz word, states with major ports were preferred. This knocked out Karnataka.
In anticipation of the project coming to them, West Bengal moved first and acquired 500 acres of land for the first phase of the project. The Left Front government���s pitch was that with Haldia Petrochemicals and proposed investments by Mitsubishi for a PTA plant, Haldia was well positioned to become a chemical hub.
But AP has now gone ahead and acquired 7,000 acres of land in Visakhapatnam. It is pushing the city���s case on the port facilities of Visakhapatnam, the global linkages of the port and the availability of a container terminal. The powers that be in Hyderabad are also pointing that a new port is coming up near Gangavaram. Needless to say they are basing their chances on the fact that the government at the Centre is of the same hue as AP.
Gujarat along with Maharashtra have traditionally been the home of chemical industries in India. Gujarat also has a dedicated chemical port in Bharuch. It also has Reliance���s 27 million ton per annum refinery which is now being expanded to a capacity of 60 million tons per annum, besides IPCL���s facilities. But the fact that Gujarat is within striking distance of Pakistani missiles is acting as a deterrent to its chances. Also the presence of a hostile opposition government led by Narendra Modi is said to be marring its chances.
Analysts, however, pointed out that the world over, chemical plants are getting relocated in developing countries. "Chemical plants are usually polluting and therefore stringent environmental considerations in developed countries are pushing them out to countries such as China and India,"a chemical expert said.