NIPCCO is promoted by Skoda Export Company Limited
Other proposals under consideration include a urea plant and chemical park Price Waterhouse Coopers to prepare a detailed project report
HYDERABAD: The stage is set for the incorporation of Nizampatnam Industrial Port City Complex (NIPCCO) as a special purpose vehicle to pave way for an investment of Rs. 6,000-8,000 crores in a minor port and a 1,000 mega watt thermal power plant close by, both in Guntur district.
NIPCCO is promoted by Skoda Export Company Limited, an entity of the Czech Republic, its Indian arm, Skoda India and Government-owned Investment Corporation of Andhra Pradesh (INCAP). The project was set in motion following the visit of Czech Prime Minister Mirek Topolanek to Hyderabad last year when a memorandum of understanding was signed.
It is understood that the Czech entity narrowed in on Nizampatnam, about 70 km away from the district headquarters of Guntur, after bathometric studies established it as very `safe' and even `tsunami-proof', given the gradual gradient of the sea slope in the area. The port and power plant apart, proposals under active consideration are a urea plant and a chemical park in which pharma majors are said to have expressed interest.
Once the incorporation is through, the Detailed Project Report (DPR) is to be prepared by Price Waterhouse Coopers, the consulting company, followed by finalisation of the other details like timelines, risks involved, sustainability, revenue models and the like including the exclusivity factor.
After the DPR is ready, probably by June 2007, and analysed, the shareholders' and the State Support Agreements will be through. Then the Commerce Ministry would assume the role of a nodal agency to facilitate clearances, including the environmental and forest clearances.
As of now, the State's share will primarily comprise land acquisition at a cost of Rs. 50 crores. The port complex comprises about 800 acres of land apart from an existing approach channel. This apart, the land required for the power plant and other proposed units, according to preliminary estimates is upwards of 5,000 acres.