Setting up of petrochemical complex in Kakinada hangs fire as Centre, AP govt continue wrangling over VGF

The petrochemical complex, proposed to be jointly set up by GAIL and HPCL at Kakinada in Andhra Pradesh, seems to be getting delayed as the Centre and the state governments wrangle over the viability gap funding (VGF).

While the Centre insists that the Rs 5,615 crore VGF “is necessary to make the project viable,” the state contends that the Rs 32,901 crore project could become viable without any VGF due to the reduction in corporate tax and interest rates.