Essar Oil will supply gas to a Matrix Group company for its proposed new urea project in West Bengal, the Rajya Sabha was informed.
Mumbai-based Essar is likely to begin gas production from below coal seams, called Coal Bed Methane (CBM), from its Raniganj block in West Bengal early next year and one of the customers is the urea plant of Matrix Group.
"Matrix Fertilisers and Chemicals, a Matrix Group company has proposed for setting up of a Greenfield gas-based Ammonia-Urea project in Burdwan district, West Bengal, based on CBM gas which will be supplied to them by Essar Oil's Raniganj CBM block," Coal Minister Sriprakash Jaiswal told the Upper House in a written reply.
The company has informed that the land has been identified by the government of West Bengal, he said.
He said the Department of Fertilisers has notified amendments in the New Investment Policy based on suggestions from the Essar Oil officials.
"The representatives of the company met the senior officials of the Department of Fertilisers and forwarded suggestions for amendments in the New Investment Policy for urea manufacturing units, notified by the Department of Fertiliers," Jaiswal said.