The revival process of G P Goenka group company Duncans Industries has hit a roadblock due to the change in the government policy on fertiliser under which the farm-nutrient producing units are required to shift from naphtha-based to gas-based for availing of the subsidy.
Sources close to the development told PTI that the closed fertiliser unit of Duncans at Kanpur would have to invest around Rs 300-350 crore for conversion to gas-based unit.
Since the company was awaiting sanction of the revival package by BIFR, this amount was prohibitive for Duncans to invest.
"The company is now talking to the government to allow gradual conversion from naphtha-based to gas-based within a period of three years," a source said.
Duncans had been referred to BIFR in 2006.
