Question : Closed-Sick Fertilizer Units

(a) the total subsidy provided toward natural gas procurement for urea based fertilizer during the last one year;

(b) the details of natural gas procurement and the rate at which it was procured during the last two years, company wise; and

(c) whether it was purchased through a tender, if so, the details thereof and if not, the reasons therefor?

Answer given by the minister


MINISTER FOR CHEMICALS & FERTILIZERS

(D.V. SADANANDA GOWDA)


(a): No subsidy is being given towards natural gas procurement for urea based fertilizers units.

(b): The unit wise details of natural gas procured with quantity and price during the last two years i.e. 2016-17 and 2017-18 for which annual escalation/ de-escalation has been finalized is placed at Annexure-A & Annexure-B.

(c): The natural gas was purchased by the respective urea manufacturing units through their long term contracts which they have entered themselves, to meet their bulk requirement. Only the gap between the contracted quantity and production requirement for the particular quarter is met through tendering process which is operated under the supervision of Empowered Pool Management Committee (EPMC) through designated pool operator i.e. GAIL.

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