 "Cabinet approves financial restructuring of Hindustan Fertilizers")
The Cabinet, on May 25, 2016, gave its approval for financial restructuring of Hindustan Fertilizers Corporation Limited (HFCL), which included waiver of GoI loan of Rs 1916.14 crores and the outstanding interest on loan amounting for Rs 7163.35 crores. The Cabinet also approved transfer of 56 acres of Ash Dyke land of Barauni unit to Bihar State Power Generation Company Limited (BSPGCL) to settle dues of HFCL for faster revival of Barauni unit.
This Cabinet approval will facilitate de-registration of HFCL from BIFR by making its net worth positive. It will clear the way for faster revival of Barauni unit of HFCL. This unit is lying defunct and was not in operation since January 1999. Therefore, the unit and other associated facilities were lying unutilised. It is important to mention here that there is no functional urea unit in the Eastern part of the country except two small units at Namrup (Assam).
The annual consumption of urea in the country is approximately 320 lakh metric tonne (LMT), out of which 245 LMT is produced indigenously and rest is imported. The setting up of a new unit at Barauni will meet the growing demand of urea of Bihar, West Bengal and Jharkhand. It will also ease the pressure on railway and road infrastructure due to long distance transportation of urea from Western and Central Regions and thereby saving in government subsidy on freight.
Barauni unit will also serve as anchor unit to Jagdishpur-Haldia gas pipeline being laid by Gail, which is critical for development and growth of economy and infrastructure in eastern India.
This Cabinet approval will facilitate de-registration of HFCL from BIFR by making its net worth positive. It will clear the way for faster revival of Barauni unit of HFCL. This unit is lying defunct and was not in operation since January 1999. Therefore, the unit and other associated facilities were lying unutilised. It is important to mention here that there is no functional urea unit in the Eastern part of the country except two small units at Namrup (Assam).
The annual consumption of urea in the country is approximately 320 lakh metric tonne (LMT), out of which 245 LMT is produced indigenously and rest is imported. The setting up of a new unit at Barauni will meet the growing demand of urea of Bihar, West Bengal and Jharkhand. It will also ease the pressure on railway and road infrastructure due to long distance transportation of urea from Western and Central Regions and thereby saving in government subsidy on freight.
Barauni unit will also serve as anchor unit to Jagdishpur-Haldia gas pipeline being laid by Gail, which is critical for development and growth of economy and infrastructure in eastern India.