Gas supply to Deepak Fertilisers' Taloja plant stopped

Gail and Reliance Industries Ltd have stopped domestic gas supply to Deepak Fertilisers & Petrochemicals Corporation Ltd’s Taloja plant, Maharashtra, following an order by Ministry of Petroleum & Natural Gas (MoPNG). According to Deepak Fertilisers, the order of MoPNG to stop supply of natural gas to the company has been taken without any prior notice, and termed it ‘arbitrary’, ‘unfair’ and ‘discriminatory’.
 
In response, Deepak Fertilisers has approached Delhi High Court to seek appropriate remedial measures.
 
Earlier, the government will stop supply of KG-D6 gas to phosphatic and potassic (P&K) fertiliser plants of firms like Deepak Fertilizer Ltd and restrict supply of cheaper domestic gas to urea manufacturing units only.
 
In the first week of May, the Fertiliser Ministry reportedly wrote to the Oil Ministry seeking immediate stoppage of supply of KG-D6 gas to phosphatic and potassic (P&K) fertiliser plants of firms such as Deepak Fertilisers and restrict supply of cheaper domestic gas to urea manufacturing units only.
 
In view of limited supply of domestic gas, in December 2011, MoPNG had proposed to stop domestic supplies to the P&K fertiliser units, such as of Deepak Fertilisers, Gujarat State Fertilizer Corp and Rashtriya Chemicals and Fertilizer. But the Empowered Group of Ministers (EGoM) put on hold the proposal till May 25, 2012. For almost two years beyond the stipulation laid by EGoM, natural gas supplies to P&K plants continued.
 
The Department of Fertiliser has now reportedly written to the Petroleum Ministry seeking stoppage of gas to P&K units.