No assurance to fertiliser units on continuing operations: Government

The government has not given any assurance to the naptha based fertiliser makers that their plants would not be closed down, parliament was told on Tuesday.

"The government has not given any assurance to the naphtha-based urea/ other fertilizer manufacturing plants that these plants would not be closed down," Minister of State for Chemicals and Fertilisers Hansraj Gangaram Ahir told the Lok Sabha in a written reply.

He said the Cabinet Committee on Economic Affairs (CCEA) note on continuation of operations of Southern Petrochemicals Industries Corporation (SPIC) plant in Tuticorin, Madras Fertilisers Ltd's plant here and Mangalore Chemicals and Fertlisers Ltd (MCFL) in Mangalore beyond April 16, 2015 has been approved.

It will be sent to the CCEA after inter-ministerial consultations, he said.

According to Ahir, operation of these three plants on gas supply through Floating Storage and Regasification Unit (FSRU) gas tankers is technically not feasible.

The commencement of supply by tankers and FSRU needs at least 24 months period after getting all necessary clearances. So gas supply through pipeline is the best option.

At present, MCFL-Mangalore and SPIC-Tuticorin are continuing urea production using naphtha as feedstock as per the direction of Delhi High Court while MFL has shut down its plant from April 17 onward, he said.