(a) whether the Government have taken any decision on the long-term
pricing commitment for the off take of urea from the joint venture Oman-
India fertilizer project;
(b) if so, the details thereof;
(c) if not, the reasons therefor?
(d) whether the Government are facing resistance from the Planning
Commission and Finance Ministry against the fixed price agreement;
(e) if so, the details thereof; and
(f) the reaction of the Government thereto?
MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS
(SHRI RAMESH BAIS)
(a) to (c): Approval for setting up an ammonia-urea complex in Oman in
joint venture with Oman Oil Company was accorded by the Government of
India in 1997. On account of subsequent sharp decline in urea prices in the
international market, it became necessary to revise and restructure the
project. The restructured project which inter alia includes the long term
pricing commitment, is under Government`s consideration.
(d) to (f): During the inter-ministerial consultations for the revised and
restructured project, Planning Commission and Ministry of Finance have
raised certain issues on the fixed price agreement that is a part of the
restructured project. These issues are also under Government`s consideration.