MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF CHEMICALS & FERTILIZERS AND MINISTER
OF STATE (I/C) IN THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION (SHRI SRIKANT KUMAR JENA)
(a) The details of closed down/sick fertilizers plants are as under;
Name of the Unit Status Reasons for their closure/sickness
sick/closed PSU
Fertilizer Corporation Sindri closed Continuous losses due to obsolete
of India Limited (FCIL) technology, design and equipment deficiencies, power shortages, problems in industrial relations, surplus manpower, resource constraints, non- availability of natural gas and sharp increase of cost of naphtha and FO/LSHS. Gorakhpur -do- Talcher -do- Ramagundam -do- Korba never commissioned
Hindustan Barauni closed
Fertilizer Haldia never
Corporation commissioned
Limited (HFCL) Durgapur closed
Madras Manali, loss making Incurring losses due to policy change in
Fertilizer Chennai. pricing of urea from 2003-04 and complex
Limited (MFL) fertilizers from 2002-03 and non recognition of past investment made for revamp of ammonia and urea plant.
(b) & (c): Yes, Madam. The steps taken for the revival of the closed/sick fertilizer public
sector undertakings are as under;
HFCL &FCIL:- Based on the recommendation of Empowered Committee of Secretaries (ECOS), Cabinet
committee on Economic Affairs (CCEA) in its meeting held on 4.8.2011 approved the proposal for
revival of closed units of FCIL and HFCL, with the stipulation that Board for Industrial and
Financial Restructuring (BIFR) proceedings be expedited and thereafter, the matter including
changes, if any, required in bid parameters, be placed before the Committee for a final
decision. Accordingly, the Draft Rehabilitation Schemes (DRS) of HFCL and FCIL were submitted
to BIFR for their approval. The BIFR appointed State Bank of India as Operating Agency for
examining the DRS of HFCL & FCIL. The BIFR took up the matter on priority basis and hold
many hearings. The BIFR in a oral hearings held on 22.11.2012 in respect of FCIL and 19.12.2012
in respect of HFCL advised that Department of Fertilizers should explore the possibility of the
companies’ net-worth becoming positive and directed to work out way to repay the dues of
creditors of the FCIL and HFCL to enable the companies to move out of purview of BIFR.
A meeting of Empowered Committee of Secretaries (ECOS) was held on 23.1.2013 to discuss the
various issues concerning revival of HFCL/FCIL along with above direction of BIFR. ECOS
recommended that the matter be placed before the CCEA. Meanwhile, Principal Secretary to the
Prime Minister took a meeting on 28.1.2013 on revival of closed fertilizer urea units. During
the meeting, it was inter-alia decided that the Department of Fertilizers will bring a note
for CCEA in respect of FCIL seeking waiver of government dues and also seeking inter corporate
loans to FCIL. In respect of closed units of HFCL, it was decided that proposal/action plan on
revival of HFCL be taken up once revival of FCIL is on track. Based on the recommendations of
ECOS and directions of PMO, a proposal for revival of closed units of FCIL was placed before
CCEA, which approved the same in its meeting held on 9.5.2013.The status in this regard has
also been placed before BIFR in the hearing held on 27.6.2013. During this hearing BIFR ordered
for exit of FCIL from BIFR purview.
Madras Fertilizer Limited:
Board for Industrial and Financial Restructuring (BIFR) in its hearing on 2nd April 2009
declared Madras Fertilizer Limited (MFL) a sick company and appointed State Bank of India as
Operating Agency with the direction to prepare a revival scheme for the company. Eleven hearings
were held so far before BIFR. In the last hearing held on 27.08.2012, the Bench directed
Government of India and other equity partner to take a decision with regard to the revised
option filed by the Company, and thereafter, the Operating Agency will examine the proposal
and submit a DRS to the BIFR. Accordingly, based on the inputs received from the company, a
revised rehabilitation proposal has been circulated for inter-ministerial consultation for
formalizing the view of the Government. The comments have been received and under consideration.
In addition to above companies, Brahmaputra Valley Fertilizer corporation Limited (BVFCL) having
its units in Namrup Assam, has also incurred continuous losses since its inception in 2002 and
Net worth of the company is Rs. (-) 412 crores (as on 31.3.2012). The company has submitted a
financial restructuring and rehabilitation proposal for consideration of Department of Fertilizer
and recommending it to Board for Reconstruction of Public Sector Enterprises (BRPSE). The BRPSE
note has been circulated for inter-ministerial consultation.
(d): Yes, Madam. Talchar Fertilizer Plant of FCIL has been included in the revival programme
and will be revived through nomination route by consortium of PSUs of Rashtriya chemicals &
Fertilizers, Coal India Limited and Gas Authority of India Limited.
(e): The details of modernisation programmes in the public sector fertilizers plants are as
under;
(i) Rashtriya Chemicals and Fertilizers Ltd. has recently completed revamping of its Thal
Ammonia-Urea plants. This shall increase the capcity of Urea production from existing 17.07
lakhs MT per year to 20 lakhs MT per year and also result in reduction in the energy consumption
by o.4 MKCal/MTof Urea.
(ii) In pursuance to Govt. policy, NFL has undertaken the feedstock conversion projects at
Panipat, Bathinda and Nangal units. Feedstock conversion projects involved changeover of
feedstock from Fuel Oil / LSHS to NG / RLNG. Feedstock conversion projects at Panipat & Bathinda
have been commissioned in January 2013 and Nangal in April 2013.
NFL has also undertaken capacity enhancement & energy savings project at Line – I & Line – II
plants of Vijaipur unit. The Ammonia & Urea production capacities were enhanced by around 15%
in Line – I and 23% in Line – II plants. These projects were commissioned in 1st / 2nd quarter
of FY 2012-13.
