Govt undertakes revival of closed fertilizer projects to make India self-reliant

Rs 50,000 crores to be invested to revive closed plants

The Dollar Business Bureau

A Joint review meeting on revival plans for closed fertilizer projects was held today, to realise PM Narendra Modi's vision of ‘Fertilizer Security for Food Security'. 

The two-pronged strategy includes existing fertilizer capacity augmentation by increasing the efficiency of the plants and revival of closed fertilizer projects.

"With the revival of the fertilizer projects, Gorakhpur, Barauni, Sindri and Talcher, an additional annual production capacity of 75 LMT would be created making India self-reliant in meeting the annual domestic demand of around 320 LMT, from being a net importer currently," Ananthkumar, Union Minister for Chemicals & Fertilizers and Parliamentary Affairs said, after the meeting.

"Financial allocations and the ground level work would start in 2017 and the five plants would become fully functional by 2020-21," he added.

Through optimum utilisation of existing capacity, India achieved the highest ever production of urea, 245 LMT, in the previous year without incurring any additional cost.

Speaking of the role of the Ministry of Petroleum & Natural Gas, the Minister said that an investment of Rs. 50,000 crores is being undertaken for revival of closed fertilizer plants and setting up of gas pipeline network to connect Eastern India to the National Gas Grid.

The investment will enhance domestic fertilizer production and availability, which will give an impetus to the vital agricultural sector there by aiding the Second Green Revolution, the press release mentioned.

"The progress of the construction of the pipeline network in eastern India, including the 2,650 km Jagdishpur-Haldia & Bokaro-Dhamra Natural Gas Pipeline, popularly known as ‘Pradhan Mantri Urja Ganga’, and the 50 LMT Dhamra LNG terminal was reviewed in the meeting," Dharmendra Pradhan, Minister of State for Petroleum and Natural Gas said.

"A total investment of Rs. 13,000 crores for the pipeline and of Rs 6,000 crores for Dhamra LNG terminal is going to be undertaken," he added.

The Minister said that this pipeline network would provide uninterrupted feedstock linkage to the revived fertilizer plants.

With an investment of Rs 8,000 crores, the Talcher Unit is being revived by a consortium of PSUs namely Rashtriya Chemicals & Fertilizers (RCF), Gas Authority of India (GAIL), Coal India Ltd. (CIL) and FCIL.

Another investment of Rs 20,000 crores undertaken by Indian Oil Corporation Ltd. (IOCL), CIL & National Thermal Power Corporation (NTPC), will be used to register a Special Purpose Vehicle (SPV), 'Hindustan Urvarak & Rasayan Limited' (HURL) for revival of closed urea plants of FCIL at Gorakhpur and Sindri and of Hindustan Fertilizer Corporation of India Ltd. (HFCL) at Barauni.