MINISTER OF THE STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS AND MINISTER OF THE
STATE IN THE MINISTRY OF PARLIAMENTARY AFFAIRS (SHRI B.K. HANDIQUE)
(a): The profit earned by NFL during the last three years is as fellows:
Pre tax Profit Post tax Profit (Rs. in crore) (Rs. in crore)
2003-04 119.11 85.04
2004-05 214.55 160.91
2005-06 169.06 110.16
(Prvisional)
(b) & (c): The main reasons for the reduction in profit in 2005-06 as compared to the previous
year were:
(i) The production in 2005-06 was lower because unlike 2004-05, the company was not allowed to
produce in excess of 100 percent capacity in its FO/LSHS bases plants due to high cost of
feedstock and comparatively cheaper cost of imported urea.
(ii) For 2004-05 maintenance shutdowns were deferred to enable higher production leading to
higher maintenance/ catalyst costs in 2005-06.
(iii) Increase in Railway Freight led to higher freight expenditure.
(d): The performance of the Company is being regularly monitored through Quarterly Review
Meetings. Special emphasis is being given on r{:duction of energy consumption. The Company is
also proposing extra production over and above 100 percent capacity utilization from its Gas
based Plants.
On a long term basis, revamp of Vijaipur - I and II Plants for capacity enhancement and energy
reduction have been finalized. Studies have also been undertaken for changeover of feed stock
in FO based Plants to Natural Gas depending upon availability and price of RLNG.
