Question : EXPANSION OF FERTILIZER PLANTS



(a) whether the Government propose to expand some fertilizer plants in the country;

(b) if so, the names of plants identified for expansion during the last three years; and

(c) the extent to which the capacity of these fertilizer plants is likely to be increased on completion of the expansion programme?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS
(SHRI SATYA BRATA MOOKHERJEE)

(a) to (c): As per the industrial policy resolution dated 24th July, 1991, no license is normally required for setting up/expansion of fertilizer plants. Entrepreneurs are free to set up fertilizer projects anywhere in the country subject to environmental clearance. However, Public Sector Undertakings/Cooperative Societies under the administrative control of the Department of Fertilizers have to obtain approval of the Government before undertaking such capital expenditure beyond their delegated powers. The details of such public/ cooperative sector fertilizer projects in India, submitted for investment approval of the Government under the prescribed procedure are given in Annexure-I. The details, including proposed production capacity of major fertilizer projects under implementation in the country, are given in Annexure-II. Annexure-I referred to in reply to parts (a) to (c) of the Lok Sabha Unstarred Question No.2532 for answer on 05.12.2000
Annexure-I
Project proposals posed to the Government by public/cooperative units for investment approval

SN NAME OF THE PSU/ PROPOSED LOCATION ESTIMATED PRODUCTION ENVISAGED COMPLETION SCHEDULE
COOPERATIVE CAPITAL Product Capacity
COST (lakh MTPA)

(RS.CRORE)
1 Krishak Bharati Hazira,Gujarat 1318 Urea 7.68 36 months from the zero date Cooperative Ltd.(KRIBHCO)

(Third stream ammonia-urea expansion project)
2 KRIBHCO (New ammonia-urea Gorakhpur, UP 1536 Urea 7.68 36 months from the zero date plant at the existing site of FCI)
3 Indian Farmers Fertiliser Cooperative Ltd.(IFFCO)

(Grassroots) Nellore,AndhraPradesh 1736 Urea 7.68 39 months from the zero date

4 Rashtriya Chemicals Thal,Maharashtra 1332 Urea 7.68 36 months from the zero date and Fertilizers (RCF)

(ammonia-urea expansion project)

Zero date is the date of approval of the proposal by the Government.
Annexure-II referred to in reply to parts (a) to (c) of the Lok Sabha Unstarred Question No.2532 for answer on 05.12.2000
Annexure-II
Details of major fertrilizer projects under implementation in the country

SN	Name of the project, Estimated capital Addl. Production Zero date Scheduled date of Remarks
location and Company/ cost (Rs.crore) Envisaged commissioning
Cooperative Product Capacity

(in lakh MTPA) 1 Oswal Chemicals & 1832.00 DAP 15.00 Sept.,97 Sept.,99 Trial production has Fertilizers Ltd. (New) NPK 3.20 started in April, 2000 Paradeep, Orissa NP 1.00 2 Godavari Fertilizers 99.13 DAP 2.8 5.1.98 31.12.01 & Chemicals Ltd. (GFCL), Kakinada, A.P.
3 Revamp of Namrup Plants 350.00 Urea 3.80 2.11.98 1.5.2001 of Hindustan Fertilizer Corporation Ltd. (HFC), Namrup, Assam
4 National Fertilizers Ltd. 135.13 Urea 1.48 11.5.99 11.5.2001

(NFL) (urea plant expansion project), Nangal, Punjab 5 Gujarat State Fertilizers 180.00 DAP 3.96 1.9.99 1.7.2001 & Chemicals Ltd., Sikka, Gujarat (DAP Expansion Project)