AP seeks KG basin gas for Rs 1,000-cr Iffco plant

The Andhra Pradesh government has requested the Centre to allocate K-G basin gas to Indian Farmers Fertiliser Cooperative Limited (Iffco)’s urea plant in Nellore district.

“We are facing a huge demand-supply gap in fertilisers that can be seen by the long lines and agitations of farmers waiting for fertilisers in the state. With active support and policy initiatives, we would like to resolve this issue with a durable solution,” chief minister K Rosaiah said.

Iffco has come forward to invest Rs1,000 crore and build a 2.6-million tonne capacity urea plan in the state. It has acquired about 2,700 acre near Krishnapatnam port in Nellore district for setting up an ammonia-urea plant in 1997. However, this facility could not be materialised as there was no availability of natural gas so far.

A major natural gas pipeline, to be laid by Reliance Industries Limited, would be passing along the National Highway close to Iffco’s existing site at Nellore.

“We understand that the pipeline is scheduled to be completed by 2012,” the chief minister said, adding farmers of Andhra Pradesh, Tamil Nadu and Karnataka could be benefited as this plant would cater to the high demand areas of these states.

Requesting the Centre to allocate the K-G gas to the Iffco urea plant, which would require about 3 million standard cubic metres per day (mmscmd) gas in Phase-I and another 3 mmscmd in Phase-II, Rosaiah said a favourable decision of in-principle allocation of the required natural gas would enable Iffco to invest and make ready its plant by 2013-14.