Question : ESTABLISHMENT OF NEW UREA PLANTS

(a) whether the Government is considering to establish some new urea plants at Haldia with a view to increase the production capacity of urea in the country to meet the domestic and international demands;

(b) if so, the details thereof;

(c) the amount to be invested to establish the said plants and improve their production capacity;

(d) whether the country will be self-reliant in demand and supply of urea after these plants start producing urea; and

(e) if so, the reaction of the Government thereto.

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

(a) to (c): Yes, Madam. Cabinet approved, in principle, the proposal for revival of closed units of HFCL including its Haldia unit in April, 2007. In October 2008, the Cabinet approved the constitution of an Empowered Committee of Secretaries (ECOS) under the Chairmanship of Secretary (F) with the mandate to evaluate all options for revival of closed units of HFCL and make suitable recommendations for consideration for CCEA. ECOS has considered the various options and finalized its recommendations. Based on the recommendations of the ECOS, a note for consideration of CCEA has been finalized and forwarded to Cabinet Secretariat on 10th June, 2011 for placing it before the Cabinet Committee on Economic Affairs. The capacity of the proposed urea plant is 1.15 MTPA and is estimated to cost Rs. 4500 crores.

(d) & (e): Presently there is demand supply of gap of approximately 7.5 MTPA. The country will be self-reliant in urea once the proposed projects of revival, revamp, expansion and Greenfield projects are commissioned.