Question : FUNCTIONING OF FERTILIZER UNITS



(a) the number of fertilizer plants in working condition in the country ;

(b) the target set and achieved for production of fertilizers during each of the last three year and current year ;

(c) whether the fertilizer units of Fertilizers Corporation of India Limited (FCIL) and Hindustan Fertilizers Corporation Ltd. (HFCL) are functioning successfully;

(d) if so, the details thereof; and

(e) the steps taken by the Government to strengthen the units of FCIL and HFCL ?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI SRIKANT KUMAR JENA)

(a) A list is annexed ( Annexure- I )

(b) The details of Target & Production of fertilizers during the last three year & current year are given below:-

(in LMT)
Product Name 2007-08 2008-09 2009-10 2010-11 Target Prod. Target Prod. Target Prod. Target Prod. (Apr.–July 10
Urea 205.87 198.58 212.34 199.22 216.32 211.12 217.38 67.85
DAP 55.01 42.12 49.63 29.93 36.62 42.47 45.60 13.52
Complex 83.90 58.51 73.72 68.48 83.05 80.38 93.34 27.23

(c) & (d): Five Units of the Fertilizer Corporation of India Limited (FCIL) and three Units of Hindustan Fertilizer Corporation Limited (HFCL) in the public sector are lying closed. Following are the Unit –wise details :-
(i) FCIL
Name of unit Date of Date of shutdown Date of Govt. commissioning decision to close down
Sindri 1979 March, 2002 5.9.2002
Gorakhpur 1969 1990 18.7.2002
Talcher 1980 1.4.1999 18.7.2002
Ramagundam 1980 1.4.1999 18.7.2002
Korba Never Not Applicable 30.7.2002 commissioned

(ii) HFCL
Name of unit Date of Date of shutdown Date of Govt. commissioning decision to close down
Barauni 1976 1999 5.9.2002
Durgapur 1974 1997 5.9.2002
Haldia Never Not applicable 18.7.2002 commissioned

(e) : The Government has decided to explore the feasibility of revival of these closed public sector fertilizer units subject to assured availability of natural gas, to meet the gap between emerging demand and indigenous production of urea in the country. The Government has constituted an Empowered Committee of Secretaries (ECOS) with the mandate to evaluate all investment options for revival of the closed units of FCIL/HFCL and to make suitable recommendations for consideration of the Government. The Government has also decided `in-principle` to consider waiver of all pending liabilities of HFCL / FCIL against Government of India Loan & interest subject to availability of a fully tied up revival proposal for the closed units. Further, the revival of Barauni unit of HFCL was proposed to be undertaken by a Special Purpose Vehicle (SPV) viz. M/s Urvarak Videsh Ltd, promoted by two fertilizer PSUs viz. M/s National Fertilizers Ltd. and M/s Rashtriya Chemicals & Fertilizers Ltd., and M/s KRIBHCO, a fertilizer cooperative. M/s UVL have expressed that revival of Barauni unit by UVL is not feasible under the present policy dispensation.

ECOS has already considered various possible investment options for revival of each of the closed units and decided to recommend the Revenue Sharing Model, for approval of CCEA. While recommending the revenue sharing model for revival, as per the decision of ECOS, the professional consultant M/s Delloite has submitted report suggesting proposed eligibility and evaluation criteria of the proposed bid documents and the process therein. In the mean-time proposal has been received in the Government via consortium of PSUs formed by Gas Authority of India Ltd. (GAIL), Coal India Ltd. (CIL) and Rashtriya chemical and Fertilizers Ltd. (RCF) wherein the companies have expressed their intent to put up a fertilizer plant on coal based technology at Talcher (unit of FCIL). Coal India Limited has assured uninterrupted coal supply for the project, and requested to allocate the project on nomination basis. Similar proposal has also been received from SAIL for Sindri and by KRIBHCO for Ramagundam.

In view of the interests evinced by some PSUs in the revival and detailed report with recommendations submitted by M/s Delloitte, DOF has called a meeting of ECOS to seek further necessary guidelines before obtaining approval of CCEA.

ANNEXURE

State-wise and Sector-wise no. of major Fertilizers units operating in the country
Sl.No.	Name of	No.of operating unit and Sector	Name of the units	States	Public	Co-operative	Private

1 Andhra Pradesh 4 Nagarjuna Fertilizers and Chemicals Ltd. Kakinada-I (Urea)
Nagarjuna Fertilizers and Chemicals Ltd. Kakinada-II (Urea) Coromandal Fertilizer Ltd. Kakinada ( DAP, Complexes)
Coromandal Fertilizer Ltd-. Vizag ( Complexes)
2 Assam 2 Brahmaputra Valley Fertilizers Corporation Ltd. Namrup-III ( Urea)
Brahmaputra Valley Fertilizers Corporation Ltd. Namrup-II ( Urea)
3 Goa 1 Zuari Industries Ltd. Goa (Urea, DAP & Complexes)
4 Gujarat 3 5 Gujarat Narmada Valley Fertilizer Ltd. Bharuch (Urea, Complexes)
Gujarat State Fertilizers & Chemicals Ltd. Vadodara (Urea, DAP& Complexes)
Gujarat State Fertilizers & Chemicals Ltd. Sikka-I (DAP & Complexes)
Gujarat State Fertilizers & Chemicals Ltd. Sikka-II (DAP & Complexes)
Hindalco Industries Ltd. Dahej ( DAP)
Indian Farmers Fertilizers Co-operative Ltd.- Kandla ( DAP & Complexes)
Indian Farmers Fertilizers Co-operative Ltd.- Kalol (Urea)
Krishak Bharati Co-operative Ltd.- Hazira ( Urea)
5 Haryana 1 National Fertilizers Ltd. Panipat (Urea)
6 Karnatka 1 Manglore Chemicals & Fertilizers Ltd. Manglore ( Urea, DAP & Complexes)
7 Kerala 2 Fertilizer and Chemicals & Travancore Ltd. Udyogamandal (Complexes)
Fertilizer and Chemicals & Travancore Ltd. Cochin ( Complexes)
8 Madhya Pradesh 2 National Fertilizers Ltd. Vijaipur-I (Urea)
National Fertilizers Ltd. Vijaipur-II (Urea)
9 Maharashtra 4 1 Rashtriya Chemicals & Fertilizers Ltd. Trombay ( Complexes)
Rashtriya Chemicals & Fertilizers Ltd. Trombay-IV ( Complexes)
Rashtriya Chemicals & Fertilizers Ltd. Thal ( Urea)
Rashtriya Chemicals & Fertilizers Ltd. Trombay-V (Urea)
Deepak Fertilizers & Petrochemicals Corporation Ltd.- Taloja ( Complexes)
10 Orissa 1 1 Indian Farmers Fertilizer Co-operative Ltd. Paradeep ( DAP, Complexes)
Paradeep Phosphate Ltd. Paradeep ( DAP, Complexes)
11 Punjab 2 National Fertilizers Ltd. - Nangal-II ( Urea)
National Fertilizers Ltd. ( Bhatinda ( Urea)
12 Rajasthan 3 Chambal Fertilizers and Chemicals Ltd. Gadepan-I ( Urea)
Chambal Fertilizers and Chemicals Ltd. Gadepan-II ( Urea)
Shriram Fertilizers & Chemicals Ltd. Kota ( Urea)
13 Tamilnadu 1 1 Madras Fertilizer Ltd. Chennai ( Urea)
Coromandal Fertilzers Ltd.- Ennore ( Complexes)
1 Southern Petrochemical Inds.Corpn.Ltd- Tuticorin ( Complexes)
14 Uttar Pradesh 5 2 Indian Farmers Fertilizer Co-operative Ltd. Phulpur-I ( Urea)
Indian Farmers Fertilizer Co-operative Ltd. Phulpur-II ( Urea)
Indian Farmers Fertilizer Co-operative Ltd. Aonla-I (Urea)
Indian Farmers Fertilizer Co-operative Ltd. Aonla-II (Urea)
Indo-Gulf Fertilizer Jagdishpur ( Urea)
Tata Chemicals Ltd. Babrala ( Urea)
Kribhco Shyam Fertilizers Ltd. Shahjahanpur ( Urea)
15 West Bengal 1 Tata Chemicals Ltd. Babrala ( DAP & Complexes)
Total 14 9 21