The Government of Gujarat declared a policy for Petroleum, Chemicals and Petrochemicals investment region in May 2007. As per this policy, Dahej area was selected by Government of Gujarat and the area of 453 sq. km. of 44 villages of Vagra and Bharuch districts was covered under PCPIR. So that the services and facilities for infrastructure related to the production of petroleum, chemicals and petrochemicals will be developed in this 453 sq. km. area.