(a) whether the Government propose to set up a joint venture project in Iran for the
production of urea ;
(b) if so, the details thereof;
(c) whether any agreement in this regard has been finalised between the two
countries;
(d) if so, the details thereof; and
(e) the cost involved in the establishment of such a joint venture project in Iran?
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (DR. CHHATTRA PAL SINGH)
(a) to (e): At present, the Government does not have any proposal to set up a joint
venture urea project in Iran. However, Indian Farmers Fertilizer Cooperative Ltd.
(IFFCO) and Krishak Bharati Cooperative Ltd. (KRIBHCO), forming an Indian
consortium, had signed a Memorandum of Understanding with Qeshm Free Area
Authority (QFAA) of Iran for setting up a gas based ammonia-urea plant in Iran. The
proposal was reviewed by the sponsors in November 2001 in the light of prevailing
market conditions relating to demand-supply scenario and international urea prices and
was then not found financially viable. The sponsors have decided to review the techno-
economic and environmental feasibility of the alternative option of setting up an
ammonia plant on stand-alone basis.