(a)whether the Union government has received any request from the Government
of Tamil Nadu for revival of Madras Fertilizers Ltd. (MFL);
(b) if so the details thereof; and
(c) the reaction of the Government thereto.
(a)whether the Union government has received any request from the Government
of Tamil Nadu for revival of Madras Fertilizers Ltd. (MFL);
(b) if so the details thereof; and
(c) the reaction of the Government thereto.
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS &
FERTILIZERS AND MINISTER OF STATE IN THE MINISTRY OF
PARLIAMENTARY AFFAIRS(SHRI B.K.HANDIQUE)
(a) : Yes Sir.
(b) : Shri M. Karunanidhi, Chief Minister, Government of Tamil Nadu vide his
letters dated 27.9.2006 and 15.12.2006 had requested the Union Government
for implementation of the recommendations of Tariff Commission for pricing of
complex fertilizers from April 2002 and for the grant of outlier benefit at a
higher rate than 50%. It was also requested to take urgent measures to prevent
imminent closure of the company and also to revive it.
(c) : The Government had extended the outlier benefit to MFL upto 30.9.2006
to make its co-terminus with Stage-II of New Pricing Scheme (NPS). Possibilities
of financial restructuring of the company are also being explored by the
Department of Fertilizers to avoid closure of the company.