(a) whether National Fertilizers Ltd., Bathinda is functioning satisfactorily since its
establishment;
(b) if so, whether the Government have decided to privatise it;
(c) if so, the reasons therefor;
(d) whether the workers and officers of NFL have submitted a memorandum against this
decision of the Government; and
(e) if so, the reaction of the Government thereto?
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
(SHRI RAMESH BAIS)
(a) : Bathinda plant of National Fertilizers Ltd.(NFL) was commiissioned on 1.10.1979.
It could initially achieve average capacity utilisation of 67.02% of its ammonia plant due to
various bottlenecks and unstable electric supply. With the commissioning of the Captive
Power Plant in 1989, the unit achieved 100% capacity utilisation in 1991-92 and is presently
operating above its rated capacity. However, the unit is incurring losses mainly due to old
and cumbersome technology resulting in higher energy consumption, high cost of repairs and
maintenance and meagre capital related charges on account of plants being fully depreciated.
(b) to (e) : Government has decided to disinvest a total of 51% of National Fertilizer
Limited’s(NFL) equity held by the Government through strategic sale to a strategic buyer
alongwith the transfer of management control. This action is in line with the Government’s
declalred policy to bring down Government equity in all non-strategic Public Sector
Undertakings (PSUs) to 26% or less. Workers and Officers of NFL have represented against
the proposed disinvestment of Government of India equity in NFL. Policy of disinvestment
is a well thought out policy which includes fully protecting the interests of workers.