Question : New Fertilizer Units

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

(a) whether the Government proposes to set up new fertilizer factories in the country;

(b)if so, the details thereof;

(c)if not, the reasons therefor;

(d) whether the Government has formulated any schemes for computerization of fertilizer and chemical factories in the country; and

(e) if so, the details thereof?

Answer given by the minister

MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS


(SHRI HANSRAJ GANGARAM AHIR)

(a) to (c): The Government has notified New Investment Policy (NIP) – 2012 on 02nd January, 2013 and its amendment on 7th October 2014 to facilitate fresh investment in urea sector i.e setting up of Greenfield and Brownfield (Expansion) projects and to make India self-sufficient in the urea sector. At present, there are 6 proposals for setting up of Greenfield and Brownfield projects, the details of which are annexed.

In addition to above, Union Cabinet in its meeting held on 21.05.2015 has approved setting up of a New-Brownfield Ammonia-Urea Complex (Namrup-IV) in the existing premises of the Brahmaputra Valley Fertilizer Corporation Ltd. (BVFCL), a PSU under the administrative control of the Dept. of Fertilizers. It has been decided that 48% equity of the new company will be held by OIL (26%), Govt. of Assam (11%) and BVFCL (11%) while the remaining 52% will be decided by bidding.

The Union Cabinet in its meetings held on 31.03.2015 and 21.05.2015 approved to revive the Gorakhpur & Sindri units of the FCIL and the Barauni unit ‘on bidding route’ for installing Urea plant at each of these locations. However, in view of the poor response from bidders for Request for Qualifications (RFQ) for Gorakhpur & Sindri Units of FCIL and keeping in mind the current market scenario, it is being considered to revive Sindri, Gorakhpur units of FCIL and Barauni unit through profit making & financially strong PSUs.

In addition, Ramagundam unit of FCIL is being revived through nomination route by a joint venture (JV) of EIL, NFL & FCIL. It has also been decided to revive Talcher unit of FCIL through nomination route by a JV of CIL, GAIL, RCF & FCIL through coal gasification route.

(d) & (e): At present, no scheme has been formulated for computerization of fertilizer and Chemical factories.

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