Question : GAS BASED FERTILIZER PLANTS



(a) the details of gas based fertilizer plants in the country;

(b) whether using gas based fertilizer units is costly;

(c) if so, whether the Government has taken decision to convert existing plants to gas based plants also in view of its long-term availability; and

(d) if so, the details thereof and the reasons therefor?

Answer given by the minister


THE MINISTER OF CHEMICALS AND FERTILIZERS & MINISTER OF STEEL(SHRI RAM VILAS PASWAN)

(a)&(b) There are at present 15 gas based urea manufacturing units with production capacity of 127.77 lakh metric tonnes per annum. Cost of production of urea units using gas as feedstock is less as compared to those using naphtha and fuel oil (FO)/low sulphur heavy stock (LSHS).

(c)&(d): On account of the efficiency and environment friendliness of natural gas

(NG)/liquefied natural gas (LNG), the Government has formulated a policy for conversion of existing naphtha/FO/LSHS based urea units to natural gas/LNG as feedstock. With a view to encouraging switchover to NG/LNG as feedstock, the investor is assured that savings on account of energy efficiency after conversion would be retained by the plants for a maximum period of 5 years in respect of naphtha based plants and 10 years in respect of FO/LSHS based plants.