(a) whether the Southern Petro-chemicals Industries Corporation Ltd. is setting up a gas-based
Nitrogenous Fertilizer Plant at Dubai in United Arab Emirates to produce 4.00 lakh tonnes of urea
at an estimated cost of $170 million;
(b) if so, the details thereof;
(c) whether the plant and equipment have already been procured; and
(d) if so, the time by which the plant is likely to be commissioned and completed?
MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI S.B. MOOKHERJEE)
(a): Yes, Sir.
(b): The project has so far achieved an overall progress of 57%. Recently the Government of
Dubai has issued a letter to the project confirming the supply of Natural Gas for an initial contract
period of 15 years starting from the fourth quarter of 2002. SPIC proposes to execute a detailed
Gas sales and purchase Agreement with the Government of Dubai in the month of August / September, 2001.
(c): Yes, Sir.
(d): Financial closure of the project is expected by the end of 2001 and the mechanical
completion by the end of 2002. The commercial production of urea is expected by the first quarter
of 2003.