(a) whether the production cost varies substantially among industrial
units producing urea in the country;
(b) if so, the details thereof including the production cost of the
fertilizer units in the public, cooperative and the private sectors
and the reasons therefor; and
(c) the steps taken to reduce production cost of urea?
MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF STATISTICS AND
PROGRAMME IMPLEMENTATION AND MINISTER OF STATE IN THE MINISTRY OF
CHEMICALS AND FERTILIZERS (SHRI SRIKANT KUMAR JENA)
(a) to (c): A statement is laid on the Table of the House.
STATEMENT REFRERRED TO IN REPLY TO PARTS (a) TO (c) OF THE LOK SABHS STARRED
QUESTION NO. 318 TO BE ANSWERED ON 15-12-2011.
(a) Yes, Madam.
(b) The reason for cost variation is on account of usage of different
feedstock (Gas/Naphtha/FO/LSHS), vintage of the urea plant and technology.
The details of normative cost of production of 29 operative urea producing
units in Public, Cooperative and Private sector during the year 2010-11 is
at Annexure.
(c) The Government has allocated domestic natural gas from KG-D6 Basin to
fertilizer units on priority basis which has replaced the costlier feedstock
i.e. Naphtha. The FO/LSHS feedstock based units are being converted to gas
based units. Gas pipeline connectivity to Naphtha based urea units has been
approved by the Ministry of Petroleum & Natural Gas for conversion to gas
based units.