Revival of fertilizer factories

Revival of fertilizer factories 

   The Minister of State for Chemicals & Fertilizers  Shri Hansraj Gangaram Ahir informed the Rajya Sabha today in reply to an Unstarred Question  that  there are 10 fertilizer units which are lying closed at present. PSU wise details about these closed units is  as under:

S. No.	Name of the PSU	Name of the closed units
1	The Fertilizer Corporation of India Limited (FCIL)	Sindri (Jharkhand), Gorakhpur (Uttar Pradesh), Talcher (Odisha), Ramagundam (Telangana), Korba (Chhattisgarh)
2	Hindustan Fertilizer Corporation Ltd. (HFCL)	Haldia (West Bengal),Durgapur(West Bengal), Barauni (Bihar)
3	The Fertilizers And Chemicals Travancore Limited (FACT)	Cochin (Urea) Plant, (Kerala)
4	Brahmaputra Valley Fertilizers Ltd. (BVFCL)	Namrup-I (Assam)

The status of revival of revival of Gorakhpur, Sindri and Barauni is as under:

Gorakhpur:    Gorakhpur unit is to be revived through bidding route.  Bid for Request for Qualification (RFQ) was opened on 16.11.2015.  Only one application was received.  The applicant did not meet the eligibility criteria, therefore it has been decided to reject the application.  A proposal has been initiated for making the bidding attractive to ensure wider participation of investor and also for gainful utilization of surplus land before reinitiating of bidding process.

Sindri:    The Empowered Committee in its  meeting held on 25.01.2016 recommended that revival of Sindri unit may taken up  through a joint venture set up with one or more Public Sector Undertakings.  Accordingly,  a proposal has been initiated for the same.

       Barauni:    Cabinet has approved on 31.3.2015 revival of Barauni Unit through bidding route by demerger of Barauni unit from HFCL.  At present HFCL is before Board for Industrial and Financial Reconstruction (BIFR).  The EC recommended for taking a fresh proposal to Cabinet for bringing out HFCL from the purview of BIFR and revive the unit by HFCL itself through bidding route, which will be a faster route. Accordingly, a proposal has been initiated for approval of the Cabinet.

            The production at Gorakhpur, Sindri and Barauni units will commence in 36 months from zero date i.e. the date from which effective start of the project begin after completion of pre-project activities. The estimated investment per Unit for setting up a Gas-based plant is around Rs.6,000 crore

            These three revived units will generate about 1200 direct and 4500 indirect jobs from urea plants and many more from other activities which cannot be quantified now.

The pipeline connectivity to the fertilizer factories in question will be done from Jagdishpur-Haldia gas pipeline in synchronization with the revival of these fertilizer factories.