Fertliser min seeks SAIL's response on Rs 70,000 cr proposal

The Fertiliser Ministry has asked steel PSU SAIL if it would adhere to setting up an urea plant at the premises of one of its sick units as part of its Rs 70,000-crore investment plan, which is awaiting clearance.

A senior fertiliser ministry official said that talks are on with the steel PSU and it has been asked to clearly state whether it would set up a fertiliser-based plant within the premises of a sick fertiliser unit in Sindri (Jharkhand).

"SAIL had come to us with a Rs 70,000 crore proposal of setting up a steel plant in Sindri along with an urea unit. We are having deliberations with the PSU. However, our stand is that if any facility is to come up there, then it should primarily be a fertiliser-based one," the official said.

The official added that they are awaiting a response from SAIL on the proposed venture. "We have asked for a status report from SAIL on it," the official said.

"We have also asked SAIL that provided it sets up a fertiliser-based unit for reviving the Sindri facility, then for this it will have to form a joint venture only with a PSU," the official said.

In March, SAIL had submitted a proposal to the fertiliser ministry for setting up a steel plant with an annual production capacity of 12 million tonnes along with an urea plant.

The fertiliser ministry has eight sick units around the country, including its Sindri facility, which it is now looking to revive.

Ministry sources said that they have received proposals for reviving its Talcher and Ramagundam units as well.

Rashtriya Chemicals and Fertilisers, Coal India and Gas Authority of India have already agreed to jointly take up the revival of the Talcher unit.

"We are planning to invite bids for revival of the remaining five fertiliser units. For this, we would be seeking Cabinet's approval soon," the official added.

SAIL has announced a massive expansion programme to take its annual production unit to 60 million tonnes from the current 14 million tonnes by 2020 at an estimated investment ofRs 1.75 lakh crore.

Global majors like Posco and ArcelorMittal have been struggling for the past five years to launch their mega projects in Orissa and Jharkhand.

Amid the delays in securing land for the mega projects, government is now evaluating land bank of closed mills, which can be offered to mega plants.