Question : REVIVAL OF SICK FERTILIZER UNITS

:

(a) the policy of Government with regard to revival of sick fertilizer units and expansion of the existing units;

(b) the steps taken in this regard during Ninth Five Year Plan and the programme drawn up for Tenth Five Year Plan;

(c) the achievement made in that regard in Ninth Five Year Plan; and

(d) the projection made for production of fertilizers in Tenth Five Year Plan, both in Public and Private sectors?

Answer given by the minister


THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS(SHRI TAPAN SIKDAR)

(a) : With regard to revival of sick fertilizer units, the policy of the Government of India to restructure and revive potentially viable PSUs and closing down those (PSUs) which cannot be revived, while fully protecting the interests of workers. For expansion of the existing units, no licence is normally required. Entrepreneurs are free to set up and expand fertilizer projects anywhere in the country subject to environmental clearance. However, Public Sector Undertakings/Co-operative Societies under the administrative control of the Department of Fertilizers (DoF) have to obtain approval of the Government before undertaking such capital expenditure beyond their delegated powers.

(b) & (c) : The details of major fertilizer projects in India commissioned during Ninth Plan period and under implementation at present, indicating their additional production capacity, location, month/year of commissioning etc. are given in the enclosed Annexure. Of these, Namrup is one of the plants of a sick PSU that is being revived.

There is no decision on any fresh investment for a new unit under public/cooperative sector during the Tenth Plan. Setting up of fertilizer plants in the private sector is not subject to any licensing requirements.

(d) The projection made for production of fertilizer in the Tenth Five Year Plan both in Public & Private Sectors, based on 100% utilization of the existing capacity is given below:


(In Lakh MTs)
YEAR `N’ `P’ TOTAL
2002-2003 120.58 52.31 172.89 2003-2004 121.74 52.31 174.05 2004-2005 121.74 52.31 174.05 2005-2006 121.74 52.31 174.05 2006-2007 129.28 52.31 181.59


Annexure referred to in reply to parts (a) to (d) of Lok Sabha Unstarred Question No.3481 for answer on 6.8.2002

ANNEXURE

MAJOR FERTILIZER PROJECTS SET UP DURING THE NINTH PLAN PERIOD

SN	Name	Location	Product	Additional	Month/Year of	Capacity	Commissioning	(in lakh TPA)
Already Commissioned
1 Indian Farmers Kalol, Gujarat Urea 1.50 August 97 Fertiliser Cooperative Ltd. Kalol Expansion Project
2 Indian Farmers Phulpur,UP Urea 7.26 December 97 Fertiliser Cooperative Ltd. Phulpur Expansion Project
3 Madras Fertilizers Chennai, Urea/NPK 0.76/1.84 March, 98 Limited, Revamp Tamil-Nadu Project
4 Nagarjuna Fertilizers Kakinada, Urea 4.95 March 98 & Chemicals Ltd. AP Kakinada Expansion Project.
5 Zuari Agro Chemicals Goa DAP/NPK 1.80/1.50 June 98/ Ltd. DAP Expansion November 98 Project

6 Kandla Expansion Kandla, DAP/NPK 3.70/2.27 August 99 project of IFFCO Gujarat

7 Hind Lever Chemicals Haldia, DAP/NPK 4.00 April 99 Ltd., West Bengal

8 Expansion project Gadepan, Urea 7.75 October 99 of Chambal Fertilizers Rajasthan and Chemicals Ltd., (Ph-II).
9 Indo Gulf Corporation Dahej, DAP 4.00 October 2000 Ltd., (new project) Gujarat

10 Coromandel Fertilizers Vyzag, A.P NPK 1.25 July 2000 Ltd., (NPK expansion project)

11 National Fertilizers Nangal, Urea 1.48 February 2001 Ltd. (NFL) (urea plant Punjab expansion project),

12 Oswal Chemicals & Paradeep, DAP/NPK/NP 15.00/3.20/1.00 April 2001 Fertilizers Ltd. Orissa (New)
13 Godavari Fertilizers Kakinada, A.P. DAP 2.8 Sept. 2001 & Chemicals Ltd. (GFCL)

Under Implementation

1 Gujarat State Sikka, Gujarat DAP 3.96 Commissioning Fertilizers & Chemicals in progress Ltd., (DAP Expansion Project) 2 Revamp of NamrupNamrup, Assam Urea 3.80 Oct. 2002 Plants of Hindustan Fertilizer Corporation Ltd. (HFC)