Tata Chem sees no problem in gas supply to fertilizer plant

Tata Chemicals (TCL) today said it sees no problem in getting gas from Krishna Godavari basin because of a dispute between Ambani brothers as the government has committed supplies to its fertiliser plant in Western Uttar Pradesh.     

TCL's Babrala plant was allocated 0.88 million cubic metres per day of gas in the first lot of allotment by the government to the fertiliser sector from Reliance Industries' KG-D6 fields.     

TCL Managing Director R Mukundan said his company does not apprehend supply concern as the government is committed to its allocation.     

"We have access to gas. The government has committed gas to us. And we are given the gas and (supply) is certainly no issue for us," Mukundan told reporters on the sidelines of a function here.     

While prioritising natural gas allocation, the government had given first preference to fertiliser units. However, the fertiliser industry had voiced concern after RIL was directed to provide maximum gas to RNRL by the Bombay High Court and appealed to the Centre for firm assurance on the fuel supply.

Tata Chemicals will also pump about Rs 50 crore into its fertiliser business this fiscal. "We will invest about Rs 50 crore in customised fertiliser this year and we will also be investing Rs 150 crore over a period of time," Mukundan said.