Profit making PSUs may revive 3 closed urea plants

Government is considering reviving three closed fertiliser plants through joint ventures of profit making PSUs under various ministries.
The likely cost of setting up of a 1.27 million tonnes urea plant is about Rs 6,000 crore and the revival process will start after formation of joint ventures and on receipt of all necessary approvals, Minister of State for Chemicals and Fertilisers Hansraj Gangaram Ahir said in a written reply to the Lok Sabha.
Earlier, the government had invited bids from private players for revival of Fertiliser Corporation of India's closed plants at Gorakhpur (UP) and Sindri (Jharkhand), and Hindustan Fertilisers and Chemicals' plant at Barauni (Bihar).

"In view of poor response from bidders for request for qualifications (RFQ) for Gorakhpur and Sindri units of FCIL and keeping in view current market scenario, it is under consideration to revive Sindri and Gorakhpur units of FCIL and Barauni unit of HFCL through joint ventures of profit making and financially strong PSUs of Ministries of Power, Coal and Petroleum & Natural Gas respectively," Ahir said.
In a separate reply, the Minister informed that Chambal Fertilisers and Chemicals Ltd is setting up 1.34 million tonnes urea plant at Kota in Rajasthan with an estimated investment of Rs 5,940 crore.
Another urea plant at Ramagundam will also be established by the Ramagundam Fertilisers & Chemicals, a joint venture between NFL, EIL and FCIL, with an estimated investment of Rs 5,254.28 crore.