(a) whether it is fact that many fertilizer and chemical plants started long ago have
been delayed badly thereby escalating the cost of these projects;
(b) if so, the details of such projects, State-wise alongwith the reasons therefor; and
(c) the steps taken by the Central Government for their early completion?
THE MINISTER OF CHEMICALS AND FERTILIZERS (SHRI SUKHDEV SINGH DHINDSA)
(a) to (c) : A Statement is laid on the Table of the Lok Sabha.
Statement referred to in the reply to Lok Sabha Starred Question No.376
for reply on 8.4.2003 regarding `Chemicals and Fertilizers plants in the
country`.
(a) to (c) : Setting up of fertilizer plants and of most chemical plants is not
subject to licensing requirements and entrepreneurs can set up manufacturing
facilities after filing an Industrial Entrepreneurs Memorandum (IEM).
In so far as Chemical plants in the public sector are concerned, the
relocation of Delhi unit of Hindustan Insecticides Limited (HIL), which was
closed under the Orders of Supreme Court with effect from 1st December, 1996,
had been delayed. This plant was originally scheduled to be commissioned by
December, 2000 at a cost of Rs.7.70 crores, but the project was delayed due to
various reasons like the time taken in the allotment of land and modifications to
be carried out in design and capacities of the plant in terms of covered area and
equipments to meet the norms of M/s Punjab State Industries & Export
Corporation (PSIEC) and M/s FACT Engineering & Design Organization
(FEDO). The plant was initially earmarked for relocation in any of these States,
i.e. Uttar Pradesh, Himachal Pradesh, Punjab, Haryana and Rajasthan. Finally
the land for the project was allotted by PSIEC in May, 1999. The plant has since
been relocated at Bathinda, Punjab at a cost of Rs.10.70 crores (approx.) and is
now operational.
In so far as Fertilizer plants in the public sector are concerned, there
is only one major project under implementation. This is the Namrup Revamp
Project at Namrup in Assam being implemented by the Brahmaputra Valley
Fertilizer Corporation Limited (BVFC), a new Company formed on segregation
of the Namrup units from Hindustan Fertilizer Corporation Limited (HFC).
Implementation commenced on 2.11.1998 and was scheduled to be completed
by 1st February, 2002 at a cost of Rs.525.47 crore. Although the Namrup-I & III
units restarted production after revamp in March 2002, completion of Namrup-II
unit`s revamp has been delayed.
The completion of the project has been delayed due to a
combination of factors such as delay in supply of critical equipment by vendors,
suppliers backing out after orders were placed, poor response to enquiries, slow
progress of civil and erection work by the site contractor and delay in
transportation of critical equipment. In order to speed up project
implementation, the Government has been monitoring progress of revamp jobs
during site visits, deputing technical experts from other fertilizer PSUs /
cooperative societies to assist the project team as well as ensuring presence of
the Chief Executive of BVFC and senior executives of the consultant at Namrup
and release of adequate funds to meet project expenditure.