Bhubaneswar, June 3: Orissa coast would be buzzing with activity if two mega projects that were cleared by the government high-level clearance authority today start.

The authority, headed by chief minister Naveen Patnaik, today approved proposals for setting up a petroleum, chemicals and petrochemicals investment region in Paradip and establishment of a shipbuilding yard and repairing facilities in Dhamra.

Chief secretary Ajit Tripathy said the investment region would be in Paradip spread over 250sqkm with Indian Oil Corporation acting as its anchor tenant.

While, Apeejay Shipping Limited would set up a shipbuilding yard along with ship repairing facilities in Dhamra with an investment of Rs 2,200 crore.

The Centre had accorded provisional approval to five, proposed petroleum, chemical and petrochemical investment regions including the one being planned in Orissa and had asked if the state government would be investing in the project infrastructure.

The authority consented to invest Rs 2,700 crore on the infrastructure development, while the Centre and central public sector undertakings, including the Indian Oil Corporation, have already agreed to spend Rs 5,800 crore on this score.

In all, Rs 15,273 crore would be spent on the infrastructure development at the project site and on the periphery, official sources said.

According to the vision plan, the proposed region would be developed in an area spread over 250sqkm without any displacement. The areas concerned would be developed into modern “city villages”. The annual project turnover has been estimated at Rs 423,500 crore.

There would be a value addition of the petroleum-related products to the tune of Rs 43,000 crore and an equal amount in shape of export earnings. The total tax income has been estimated at Rs 42,000 crore, of which Rs 32,100 crore is expected to go to the state exchequer.

Another proposal submitted by Apeejay Shipping, the country’s largest privately-owned shipping company, and Bharati Shipyard Limited, one of the leading private shipyards, to set up a project in Orissa at an estimated cost of Rs 2,200 crore was also cleared by the authority today. If and when the project materialises, it would be the first ship building and repair project in the private sector in eastern region.

Apeejay Shipping has a fleet of modern dry bulk carriers operating worldwide. An ISO 9001:2000 company, Apeejay Shipping is a part of the diversified conglomerate, Apeejay Surrendra Group, established in 1910.

The project is proposed to be set up in an area spread over 1,050 acres near the upcoming all-weather port at Dhamra in Bhadrak district at an estimated cost of Rs 2,200 crore. The project would be implemented in three phases and completed by 2013, the sources said.

The greenfield project is expected to create an opportunity for direct employment to 11,300 persons and indirect employment to 40,000 persons.