Revival of 5 fertilizer units would increase urea production by 63.5 LMTPA: D.V. Sadananda Gowda

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Capital Market
Last Updated : Jun 21 2019 | 3:16 PM IST

Minister says excess demand over indigenous production would be met through imports

Union Minister for Chemicals and Fertilizers, D.V. Sadananda Gowda, while giving a written reply to a question on reopening and re-modernising of closed fertilizer PSUs, in Rajya Sabha, stated that Government of India has decided to revive Barauni unit of Hindustan Fertilizer Corporation Limited (HFCL) and Gorakhpur, Sindri, Talcher& Ramagundam units of Fertilizer Corporation of India Limited (FCIL) on nomination route by setting up new Ammonia Urea plants of 12.7 LMTPA capacity at each location.

Barauni unit of HFCL and Sindri and Gorakhpur units of FCIL are being revived by M/s. Hindustan Urvarak & Rasayan Limited (HURL), a Joint Venture of National Thermal Power corporation Limited (NTPC), Coal India Limited (CIL), Indian Oil Corporation Limited (IOCL), FCIL& HFCL.

Talcher unit is being revived by M/s. Talcher Fertilizers Limited (TFL), a Joint Venture of Rashtriya Chemicals & Fertilizers Limited (RCF), CIL, Gas Authority of India Limited (GAIL) & FCIL. Ramagundam unit by M/s. Ramagundam Fertilizers & Chemicals Limited (RFCL), a Joint Venture of Engineers India Limited (EIL), National Fertilizers Limited (NFL) & FCIL.

The details of the expected commissioning dates of the above units are as follows:

Barauni (Bihar) - May 2021

Ramagundam (Telangana) - December 2019

Gorakhpur (Uttar Pradesh) - February 2021

Sindri (Jharkhand) - May 2021

Talcher (Odisha) - September 2023

The Minister further stated that after the commissioning of these five units, the total production of urea would be increased by 63.5 Lakh Metric Tonne Per Annum (LMTPA). The excess demand over indigenous production would be met through imports.

In a written reply to another question in Rajya Sabha, D.V. Sadananda Gowda stated that the usable assets, townships, hospitals, etc., are being handed over to the new Joint Venture Companies for use. Further, old plants of HFCL and FCIL have been sold through e-auction by M/s. Metal Scrap Trade Corporation Limited (MSTC), under the supervision of M/s. Projects & Development India Limited (PDIL), as approved by the CCEA/Cabinet. There is no proposal to hand over the assets of HFCL and FCIL to local State Governments, the Minister added.

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First Published: Jun 21 2019 | 2:59 PM IST

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