Hindustan Urvarak explores new projects for next phase of growth

HURL is exploring green urea and coal gasification projects while considering ammonium sulphate and NPK production at its Barauni and Sindri units

Hindustan Urvarak and Rasayan Limited (HURL), a joint venture of state-run NTPC, Indian Oil, Coal India, Fertilizer Corporation of India Limited (FCIL), and Hindustan Fertilizer Corporation Limited (HFCL),  incorporated in 2016, is charting plans for its next phase of growth by examining the feasibility of green urea and coal gasification projects, sources said.

 

Sources said that the company, which has emerged as one of India’s significant players in fertiliser manufacturing over the years, is exploring the possibility of producing ammonium sulphate at its Barauni unit using surplus ammonia produced at the plant, and NPK fertiliser at its Sindri unit using surplus ammonia.

 

A feasibility study of the proposals is being prepared following which they will be sent for further review, sources said. 

 

Ammonium sulphate is fast emerging as an affordable alternative to urea, particularly in times of crisis when urea supplies get scarce, like during the West Asia crisis.

 

While urea contains 46 per cent nitrogen, ammonium sulphate contains 21 per cent nitrogen and 24 per cent sulphur. Some experts said that as nitrogen content is less in ammonium sulphate compared to urea, it requires more application than conventional urea.

 

Last year in the rabi season, the Central government brought ammonium sulphate under the nutrient-based subsidy (NBS) mechanism that would make it affordable for farmers. Ammonium sulphate is considered a healthier soil nutrient as it releases nitrogen slowly into the soil as compared to urea.

 

The second plant chemical that HURL has proposed to manufacture is NPK, which in its various grades is considered a much healthier option than conventional urea and DAP as it gives balanced nutrition to the soil.

 

NPK is outside the NBS mechanism partially, and companies are free to price their bag of NPK based on market dynamics.

 

The three lead promoter companies of HURL -- CIL, NTPC, and IOCL --are amongst the top Maharatna Public-Sector Undertakings, belonging to the ministries of coal, power, and oil and natural gas.

 

According to the company website, these three companies hold a total of 89 per cent equity share with equal partnership, while FCIL and HFCL together hold the balance 11 per cent share against their usable assets, opportunity cost and use of land on a lease basis at the three plant locations.

 

The company, according to its website, operates natural gas-based fertiliser complexes in Gorakhpur, Barauni and Sindri.