Question : APPROVAL OF FERTILIZER PROJECT



(a) Whether it is a fact that the Government have not yet finally given clearance of Hazira Phase-II Project submitted by KRIBHCO;

(b) if so, the reasons therefor;

(c) whether the Government are importing fertilizers due to delay in giving approval to the Hazira Project; and

(d) if so, the details of quantity of fertilizers imported by the Government during the last three years along with the expenditure incurred thereon?

Answer given by the minister


THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS(SH. S.B. MOOKHERJEE)

(a) & (b): The proposed Hazira (Phase-II) Fertilizer Expansion Project of Krishak Bharati Cooperative Ltd. (KRIBHCO) along with three other proposed urea projects in the Public/Cooperative sector was approved ‘in principle’ by the Government in April 1999 subject to investment appraisal of these projects by the Public Investment Board (PIB). Investment appraisal of these urea projects was undertaken by the PIB in July 1999. In June 2000, a proposal for taking a final investment decision on these projects was considered and deferred by the Government. This proposal was formulated taking into account the observations of the PIB regarding the viability of the projects, desirability of encouraging use of liquefied natural gas as feedstock to reduce the incidence of subsidy and the need to stagger implementation of the proposed projects due to limited demand supply gap forecasts.

(c) & (d) : Urea is the only fertilizer which is under statutory price and movement control and whose imports were made to bridge the gap between the requirement and indigenous availability. The quantity of urea imports in the last three years along with the expenditure incurred thereon is as under :-

Year	Urea (LMT)	C&F value (Rs. Crore)
1998-99	5.56	240.00
1999-2000	5.33	197.16
2000-01	Nil -