Govt plans Rs 50,000 cr investment for revival of closed fertiliser plants

“With the revival of the fertiliser projects, Gorakhpur, Barauni, Sindri and Talcher, an additional annual production capacity of 75 lakh metric tonne (LMT) will be created making India self-reliant in meeting the annual domestic demand of around 320 LMT, from being a net importer currently. Financial allocations and the ground level work would start in 2017 and the five plants would become fully functional by 2020-21,” said Ananth Kumar, Minister for Chemicals & Fertilizers, after the meeting.

To achieve the goals of Prime Minister Narendra Modi’s vision of ‘Fertilizer security for food security’, the Ministry of Chemicals & Fertilizers, in coordination with Ministries of Petroleum & Natural Gas and Power & Coal, is following a two-pronged strategy. This strategy includes existing fertiliser capacity augmentation by increasing the efficiency of the plants and revival of closed fertiliser projects. 

According to Dharmendra Pradhan, investment of about Rs 50,000 crores will required for revival of closed fertiliser plants and setting up of gas pipeline network to connect Eastern India to the National Gas Grid. 

During the meeting, the progress of the construction of the pipeline network in eastern India, including the 2,650 km Jagdishpur-Haldia & Bokaro-Dhamra Natural Gas Pipeline, popularly known as ‘Pradhan Mantri Urja Ganga’, and the 50 LMT Dhamra LNG terminal was reviewed. A total investment of Rs 13,000 crores for the pipeline and of Rs 6,000 crores for Dhamra LNG terminal is going to be undertaken, Dharmendra Pradhan added.

The Minister said that this pipeline network would provide uninterrupted feedstock linkage to the revived fertiliser plants, wherein Gorakhpur, Barauni and Sindri plants would be natural gas based and Talcher would be coal gasification technology based, for which coal linkages have already been provided. Pradhan added that the foundation stones for the five fertilizer plants would be laid down post monsoon this year and would be completed by 2020-21.

The Talcher unit is being revived by a consortium of PSUs namely Rashtriya Chemicals & Fertilizers (RCF), Gas Authority of India (GAIL), Coal India Ltd. (CIL) and FCIL by investing Rs 8,000 crores. Indian Oil Corporation Ltd (IOCL), CIL & National Thermal Power Corporation (NTPC) have registered a special purpose vehicle (SPV) by name Hindustan Urvarak & Rasayan Limited (HURL) for revival of closed urea plants of FCIL at Gorakhpur and Sindri and of Hindustan Fertilizer Corporation of India Ltd (HFCL) at Barauni, by an investment of Rs 20,000 crores. An Inter-Ministerial Committee (IMC) has also been constituted to oversee the revival process.