MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF CHEMICALS & FERTILIZERS AND MINISTER
OF STATE (I/C) IN THE MINISTRY OF STATISTICS & PROGRAMME IMPLEMENTATION (SHRI SRIKANT KUMAR JENA)
(a) & (b): Yes Madam, during the 11th Plan period, under the Plan Scheme, budgetary support
in the form of loan has been released to loss making fertilizer companies under the
administrative control of the Department of Fertilizers. Financial aid has been provided
to loss making companies such as Brahmaputra Valley Fertilizers Corporation Limited (Assam),
Fertilizers and Chemicals Travancore Limited (Kerala) and Madras Fertilizers Limited
(Tamil Nadu) for Renovation, Replacement and maintenance of critical equipments to sustain
their operations. On the basis of this financial aid, the loss making companies continue
their operations without interruption.
Details of Fund released during 11th Plan is as under:
(Rs. in crores)
Year Plan loan allocated to sick/loss making PSUs BVFCL# FACT# MFL
2007-08 07.47 15.00 09.00
2008-09 19.98 13.00 12.97
2009-10 65.00 34.00 96.99
2010-11 45.00 89.99 74.50
2011-12 67.80 60.74 88.95
Total 205.25 212.73 282.41
# Allocation of plan loan in respect of BVFCL is treated as contribution towards the North
Eastern Region.
# During 2008-09 FACT was given Rs.200.00 crores Grants-in-Aid for sustaining its operations.
On account of financial restrictions imposed by Ministry of Finance, no financial aid has been
released to the above mentioned companies during 12th Plan period till date.
Also Government has released amounts to the loss making Pharmaceutical Public Sector Companies
such as Hindustan Antibiotics & Pharmaceuticals Limited (HAL) at Pune, Maharashtra and Bengal
Chemicals and Pharmaceuticals Limited (BCPL) at Kolkata, West Bengal and Indian Drugs &
Pharmaceuticals Limited (IDPL) at Gurgaon, Haryana during the 11th & 12th Plan periods, as detailed below:
Fund released during the 11th Plan
(Rs. in crore)
Year PSU Amount sanctioned Purpose
2007-08 HAL 20.17 Setting up of New Powder Injectable vialling line for Cephalosporin & Upgrading existing Betalactum powder Injectable line BCPL 20.00 Capital restructuring (Revival Scheme) IDPL 4.93 Schedule M Compliance for Rishikesh, Gurgaon & Chennai
2008-09 HAL 10.00 Upgradation of facilities to WHO-GMP/Schedule ‘M’ Compliance BCPL 20.00 Capital restructuring (Revival Scheme) IDPL - -
2009-10 HAL 10.26 Upgradation of fermentation facilities for manufacture of Erythromycin Thiocyanate BCPL 24.40 Capital restructuring (Revival Scheme) 6.29 Setting up of Quality Control Laboratories and Integrated R&D Laboratories in BCPL IDPL - -
2010-11 HAL 2.50 Setting up of manufacturing facilities for Erythromycin Thiocyanate 2.53 Upgradation of fermentation facilities for manufacture of Erythromycin Thiocyanate BCPL 25.00 Capital restructuring (Revival Scheme) IDPL 4.45 For WHO-GMP Compliance
2011-12 HAL - - BCPL 0.60 Capital restructuring (Revival Scheme) IDPL 1.21 For Schedule-M Compliance, ODCL 3.40 For Schedule-M Compliance of Gurgaon, Rishikesh& Chennai Plant of IDPL
Fund released during the12th Plan
(Rs. in crore)
Year PSU Amount sanctioned Purpose
2012-13 HAL - - BCPL - - IDPL 5.00 Liquid Oral Plant (2nd line) for Hyderabad Plant
2013-14 HAL - -
(till
07.08.
2013) BCPL - - IDPL - -
(c) & (d): During 12th Plan period, an amount to the tune of Rs.1398.50 crore has been
allocated as Gross Budgetary Support by the Planning Commission for these loss making companies
namely BVFCL, FACT and MFL. This amount is available for meeting the requirement of renewal
and replacement of fertilizer companies. The companies have been asked in the past to prepare
schemes to be implemented under the Plan schemes with necessary care and due appreciation of
all the factors affecting their investment proposal to obtain most beneficial outcomes from the
investment. Companies will be asked to prepare future plans in an optimal fashion to generate
necessary outcomes. Schemes proposed by the companies will be reviewed/monitored by the
Department of Fertilizers with a view to complete them in a timely manner and to utilize funds
allocated. Financial aid is provided for Renovation, Replacement and maintenance of critical
equipments to sustain their operations.
In case of Pharmaceutical PSUs, the Government of India has decided to consider a proposal for
revival of HAL which includes sale of surplus land.
For IDPL, the Board for Industrial & Financial Reconstruction (BIFR) has appointed Industrial
Development Bank of India (IDBI) as the Operating Agency (OA). IDBI has submitted the Final
Draft Rehabilitation Scheme (DRS) costing Rs. 967.92 crores to BIFR and the Ministry, which is
under consideration.
(e) & (f): The country is fully dependent on imports in Potassic sector and to the extent of
90% in Phosphatic sector in the form of either finished products or its raw materials. Subsidy
being fixed, any fluctuation in international prices has effect on the domestic prices of P&K
fertilizers. The prices of P&K fertilizers have increased during the year 2012-13 due to
increase in international prices of fertilizers and its raw material and also on account of
depreciation of Indian Rupee. During the year 2013-14, the Department has directed the
fertilizer companies to reduce the prices of P&K fertilizers. It is now mandatory for P&K
manufacturing companies to provide information about costs so that reasonableness of MRPs
could be monitored and action may be taken in proven cases of abuse of subsidy mechanism.
