Question : RENOVATION OF FERTILIZER FACTORIES



(a) whether the Government has a policy to renovate the fertilizers factories in the country to adopt modern technology and increase production;

(b) if so, whether there is any proposal to renovate the plants at the Fertilizers and Chemicals Travancore Ltd.(FACT) in Kerala;

(c) if so, the details thereof; and

(d) the present quantity of production of various fertilizers at FACT, Kerala?

Answer given by the minister


MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI SRIKANT KUMAR JENA)

(a): Yes, Madam. The Government has announced on 4th September 2008, a new investment policy for urea sector to attract the much required investment in this sector. The policy is based on IPP benchmark and has been finalized in consultation with the industry. The New Investment Policy aims at revamp, expansion, revival of existing urea units and setting up of Greenfield/ Brownfield projects. The units have expressed concern regarding pricing and firm availability of gas before taking final investment decision to undertake expansion of their existing units. The Government is therefore formulating New Investment Policy 2012. A draft CCEA Note on New Investment Policy 2012 prepared in consultation with Ministries/ Departments is under consideration of Department of Fertilizers.

(b)& (c): The Fertilizers and Chemicals Travancore Ltd.(FACT) has drawn up a plan for implementation of the following projects :-


Sl.No Project Capacity Cost (Tons per day) (Rs. Crore)
1 NP Expansion 1000 230
2 Urea Plant 1500 930
3 Ammonia-Urea Complex 2800-3500 4600
4 Sulphuric Acid 2000 425

Since FACT is facing acute shortage of funds, FACT has invited expression of Interest for JV Participation for implementation of these projects. The response are being evaluated.

(d) Actual production of fertilizers at FACT during the year 2011-12 is given below:-

Sl.No Product Production in Tonnes
1 FACTAMFOS 22:20 622256
2 AMMONIUM SULPHATE 163468