Kochi: The Kerala Infrastructure Investment Fund Board (KIIFB) on Monday gave a new momentum to the ambitious petrochemical park in Kochi by clearing the proposal to acquire 600 acres of land belonging to Fertlisers and Chemicals Travancore (FACT) at Ambalamugal in Kochi. The total cost of land acquisition is expected to be Rs 1,264 crore. Of the 600 acres, 450 acres will be earmarked for the petrochemical park. The state government is mulling setting up a petroleum coke-based power project or a pharma park on the rest of the land.
FACT, the ailing public sector fertiliser company, is understood to be in favour of the proposal part with its land though it had initially objected to it claiming that it needed the land for its future expansion projects. The company has more than 2,100 acres spread across its two campuses at Udyogamandal and Ambalamugal in Kochi. It is understood that the land for the petrochemical park will be priced at Rs 2.5 lakh per cent. Sources familiar with the development told DC the state government has taken up the proposal with the Union Ministry of Fertilisers.
The Central ministry, which last year extended a loan of Rs 1000 crore to FACT, is keen to get the money back and the deal with the Kerala government will facilitate it. KSIDC, which was originally given the task to acquire the land for the project had completed negotiation for the acquisition of 118 acres through negotiated purchase at a cost of '4 lakh per cent and the proposal is awaiting clearance of the State Level Empowered Committee. If FACT agrees to the land sale, then the entire exercise would have to be called off.
The LDF state government had meanwhile handed over the project which envisages a total investment of Rs 1,864 crore to Kerala Industrial Infrastructure Development Corporation (Kinfra). The petrochemical park is expected to house units that will use propylene derivatives such as acrylates, oxo alcohol and acrylic acid which will be produced by BPCL Kochi Refinery at it propylene derivative petrochemical project which is expected to be commissioned in 2018.
