In pursuance of the PCPIR policy of the Government of India and the approval of the Cabinet Committee on Economic Affairs in February 2009, the Department of Chemicals and Petrochemicals government of India entered into a MoA with the Government of West Bengal to set up a PCPIR at Haldia.

The PCPIR policy is a window to ensure the adoption of a holistic approach to the development of global scale industrial clusters in the petroleum, chemical and petrochemical sectors in an integrated and environment friendly manner. The idea is to ensure the setting up of industrial estates in a planned manner with a view to achieve synergies and for value added manufacturing, research and development.

The Government of West Bengal proposed to host a PCPIR in Haldia in Purba Medinipur district covering the existing Haldia Municipal Area and the adjoining areas of Haldia Development Authority. It will cover an area of 250.19 square kilometers which includes 200.83 square kilometers on the mainland and 49.36 square kilometers on the Nayachar Island. It will exclude the CRZ I area of 2.64 square kilometers on the island. The processing area of 108.42 square kilometers is 43.33% of the total area and hence in conformity with the PCPIR policy that states that the minimum processing area for the PCPIR will be about 40% of the total designated area. The balance 141.77 square kilometers will be used as Non-Processing area and will include residential, commercial and other social and institutional infrastructure.

The Govt. of West Bengal proposes to notify the WBPCPIR under Section 9 of West Bengal Town and Country Act 1979. The State Government proposes to constitute a WBPCPIR Development Authority as the Development Authority for the notified area under Section 11 of the West Bengal Town and Country Act 1979.

State Government has estimated a total investment of INR 93,180 crore in the proposed PCPIR, including a committed investment of INR 48,180 crore. The total employment generation from the WBPCPIR is expected to be 1 million persons which includes direct employment to 400000 persons.

The proposal envisages development of physical infrastructure such as roads, rail, air links, ports, water supply, power etc at a cost of INR 18031 crores. The State Government has sought support from Government of India of INR 2108 crore involving road works, port facilities and a submarine cable landing station.