Lok Sabha
As per the Industrial Policy Resolution dated 24th July 1991, no licence is normally required for setting up/expansion of Fertilizer Pants. Entrepreneurs are free to set up Fertilizer Projects anywhere in the country subject to environmental clearance. This was stated by the Minister of Chemicals Fertilizers and Steel ,Shri Ram Vilas Paswan, in a written reply to a question in the Lok Sabha today. He said that Public Sector Undertakings/Cooperative Societies under the administrative control of the Department of Fertilizers are however, required to obtain approval of the Government, before undertaking such capital expenditure beyond their delegated powers. Further, setting up of new , expansion and de-bottlenecking projects of Urea requires prior approval of the Department of Fertilizers which are to be based on natural gas and Liquefied Natural Gas (LNG) has feed stock and fuel, as per the pricing policy for investment made in new , expansion and de-bottlenecking projects of Urea, notified in January 2004.
In the Public Sector Bharahamaputra Valley Fertilizer Corporation Limited (BVFCL), a new company formed on segregation of Namrup Units from Hindustan Fertilizer Corporation (HFC), is implementing major revamp of its Plants at Namrup in Assam at an approved completion cost of Rs.525.47 crore to enhance Urea Production from the Units to 5.55 lakh MT per annum. The Project has been fully funded by the Government and so far Government has released Rs.521.02 crore as budgetary support to BVFCL for implementing this project, the Minister further stated.
(Release ID :5421)