Ministry of Chemicals and Fertilizers
06-February, 2018 13:22 IST
US$ 1.08 million saved during April-December 2017 due to decline in Urea Imports: Shri Rao Inderjit Singh
Shri Singh gives details on Current Progress on Revival of 5 Closed Fertilizer Units
Minister of State for Planning (IC) and Chemicals & Fertilizers, Shri Rao Inderjit Singh, in a written reply to a question on status of Urea Imports and steps taken by Government to increases fertilizer production in the country, in Lok Sabha today, informed that the import of urea is made on Government account to bridge the gap between estimated indigenous production and assessed demand in the country. The import during the year 2017-18 (Apr-Dec) was 49.83 Lakh MT as against the import of 49.88 Lakh MT in the year 2016-17 for the same duration. Thus there is a decline of 0.05 Lakh MT in import of urea during 2017-18 (Apr-Dec) over previous year. Based on the weighted average price of urea imports during the current year i.e. US$ 216.86 PMT CFR, the saving work out to US$ 1.08 million, the Minister informed.
Informing the House that the production of other fertilizers has also increased in the country, Shri Singh gave details of the production of urea and other fertilizers during the last three years and current year (up to Dec, 17) are as below:
Year
Urea
A/S
DAP
Complex
SSP
Total
2014-15
225.85
4.41
34.44
78.32
42.36
385.39
2015-16
244.75
4.14
37.87
83.01
43.39
413.14
2016-17
242.01
4.90
43.65
79.66
44.18
414.41
2017-18(upto Dec,17)
177.84
4.14
36.88
63.01
30.03
311.90
The Minister also informed about the initiative taken by the Government for revival of closed fertilizer units and stated that during the last two years Government of India has approved revival of five units namely, Ramagundam, Sindri, Gorakhpur and Talcher units of FCIL and Barauni unit of HFCL. Shri Singh gave details on current progress, which is as given below:
Ramagundam Unit:
Ramagundam unit of FCIL is being revived on nomination basis by consortium of PSUs namely Engineers India Limited (EIL), National Fertilizers Limited (NFL) and FCIL by setting up a gas based fertilizer plant of 1.27 MMTPA capacity. The Joint Venture agreement was signed on 14.1. 2015. JV Company named Ramagundam Fertilizers & Chemicals Limited has been formed. Project construction activities are under progress. As on 15th January 2018, 69.5% of physical progress of the project has been made. The project is likely to be commissioned by 31.12.2018, the Minister added.
Gorakhpur & Sindri units of FCIL and Barauni Unit of HFCL
Gorakhpur, Sindri and Barauni units are being revived by means of a Special Purpose Vehicle of Public Sector Undertakings namely, National Thermal Power Corporation, Coal India Limited, Indian Oil Corporation Limited and Fertilizer Corporation India Limited/Hindustan Fertilizer Corporation Limited by setting up gas based fertilizer plants of 1.27 MMTPA capacity each. A Joint Venture company by name Hindustan Urvarak & Rasayan Limited (HURL) has been formed. Progress made so far is as under:
Pre project activities are under progress. The following pre-project activities have been completed in respect of all the three project:
- Pre-feasibility
- Geo technical investigation and topographic studies
- Hydro geological and ground water study for water availability
- Environment clearances have been obtained
- Building/office renovation work has been started and full-fledged site offices have been established at all the 3 locations.
- Pre project works like site development, construction water and power facility have already begun at Gorakhpur & Barauni.
- The technical and commercial evaluation of all the bids for all three projects have been completed.
The above three projects likely to start production by 2020, the Minister added.
Talcher Unit:
Talcher Unit of FCIL is being revived on ‘Nomination basis’ by a Consortium of PSUs namely RCF, GAIL, CIL and FCIL by setting up a coal based fertilizer plant of 1.27 MMTPA capacity. A JV Company Talcher Fertilizers Limited (TFL) has been formed.
Progress made so far as under:
- Coal gasification technology has been selected.
- Pre project activities are under progress.
- Environment clearance has been obtained.
- Power Price Parity for Bridge Linkage Coal approved by Coal Ministry.
- MoU with IOC for Pet-coke signed on 10.08.17
The Talcher project is likely to start production by 2021, the Minister added.
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Ministry of Chemicals and Fertilizers
06-February, 2018 13:23 IST
Steps taken by Government to attract fresh investments in the Urea Sector
Commercial Production of 1.3 MMTPA Coal Bed Methane based Greenfield Ammonia-Urea complex of Matix Fertilisers & Chemicals Limited at Panagarh, West Bengal started on 1st October, 2017: Shri Rao Inderjit Singh
Minister of State for Planning (IC) and Chemicals & Fertilizers, Shri Rao Inderjit Singh, in a written reply to a question on concrete steps taken by the Government to attract fresh investments in the urea sector and to make the country self-sufficient in this sector, in Lok Sabha today, informed that the Government has announced New Investment Policy – 2012 (NIP-2012) on 2nd January, 2013 and its amendment on 7th October 2014 to facilitate fresh investment in urea sector and to make India self-sufficient in the urea sector.
Shri Singh informed that under the provisions of NIP-2012 and its amendment, Matix Fertilisers & Chemicals Limited (Matix) has set up a Coal Bed Methane (CBM) based Greenfield Ammonia-Urea complex at Panagarh, West Bengal with the installed capacity of 1.3 MMT per annum. The commercial production of Matix has started on 1st October, 2017. Chambal Fertilizers & Chemicals Limited (CFCL) has also proposed to set up a brownfield project with capacity of 1.34 MMT at Gadepan, Rajasthan, which is likely to start commercial production in January, 2019.
The Minister further informed that the installed capacity of 30 urea manufacturing units is 207.54 LMT against which the total indigenous urea production during the year 2015-16 and 2016-17 was 244.75 LMT and 242.01 LMT respectively. In order to increase the production of fertilizers by Central PSUs, Government has decided to revive closed units namely Gorakhpur, Sindri, Talcher and Ramagundam units of (FCIL) and Barauni unit of Hindustan Fertilizer Corporation Limited (HFCL) by setting up of 1.27 Million Metric Tonne per annum urea plant at these units. All of these units are targeted to become operational by 2020-21, Shri Singh added.
In addition to above, the Government has also decided to install a new Urea plant of 8.646 Lakh Metric Ton (LMT) per annum in the existing premises of Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), which will subsequently replace the existing Namrup II (Capacity 2.40 LMT) and Namrup III (Capacity 2.70 LMT) units, the Minister added.
In a written reply to a separate question in Lok Sabha today, Shri Singh informed that the total urea capacity in the country capacity after revamping of the five units at Gorakhpur, Sindri, Talcher and Ramagundam and Barauni is likely to be 304.5 LMTPA. In addition, two plants of combined capacity of 26.4 LMTPA are also being set up/commissioned in the private sector. This will further augment capacity to nearly 33 MMTPA. This augmentation in production capacity should help India in moving towards achieving self-sufficiency in urea, the Minister added.
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