Govt receives proposals from 11 cos for new urea capacity

The Fertilizer Ministry, under the new urea investment policy, has received proposals from 11 companies for expansion or revamp of fertiliser plants.
Private companies, including Zuari Agro Chemicals Ltd, Indo-Gulf Fertilisers Ltd, Chambal Fertilisers and MATIX Fertilizers and Chemicals Ltd, have applied under the new policy, the Fertilizer Ministry said in a statement.
Kanpur Fertilizers, Bharat Coal Chemicals Ltd and Nagarjuna Fertilizers and Chemicals Ltd are also among the private companies that have submitted proposals, it said.
Also, four PSUs -- Rashtriya Chemicals and Fertilizers (RCF), GNFC, GSFC and FACT -- have applied under the policy.
Among these 11 applications, eight are for brownfield expansion, two are greenfield and one is for revamp of the current project.

Under the New Investment Policy (NIP)-2012 notified last month, the interested private players required to furnish Bank Guarantee (BG) of Rs 300 crore for each project so as to ensure seriousness and credibility of the project.

However the PSU's have been exempted from it.
The annual demand of urea in the country is around 30 million tonnes, whereas the domestic production is around 22 million tonne. The gap is met through imports.
Decisions on various issues during the implementation of this policy, including approving proposals for setting up of urea capacity, will be taken up by a Committee of Secretaries including from Expenditure, Petroleum, Planning Commission and Agriculture.

Fertilisers Secretary will be Chairman of the committee.