Though the Centre in principle has agreed to revive the closed fertilizer units of the Fertiliser Corporation of India (FCI) including the fertilizer plant at Talcher, it is yet to take a final decision on the mode of the revival.
The Centre had appointed an empowered committee of secretaries in October 2008 to explore all possible financial models for the revival of the closed FCI units.
The committee has been asked to submit its recommendations to the government, , MK Azhagiri, the Union minister for chemicals and fertilisers said in a written reply to Rajya Sabha MP Rudra Narayan Pany.
The Centre’s empowered committee of secretaries, chaired by the secretary, chemicals and fertilisers consists of secretaries of other departments like disinvestment, public enterprises as well as petroleum and natural gas as its members.
This committee was constituted after the Centre in April 2007 decided to examine the feasibility of reviving various closed units of FCI and Hindustan Fertiliser Corporation subject to confirmed availability of gas.
According to the minister, in the first meeting of the committee, it was decided to appoint Project and Development India Limited (PDIL), a premier fertilizer consultancy organisation under the department of fertilisers, for asset evaluation in respect of various closed units, including the Talcher urea plant.
“Financial consultants have also been appointed by PDIL in coordination with the companies for examining the various possible options for revival of each of the units including the Talcher unit. The report of these consultants is yet to be received”, said Azhagiri.
It may be recalled that on August 24, 2007, Ram Vilas Paswan, the then Union minister for chemicals and fertilisers in a reply to Pany had said that profit making Rastriya Chemicals and Fertiliser Limited had been entrusted with the responsibility of the revival of the Talcher unit.
The coal-based fertilizer plant at Talcher was set up by the Government of India in 1969.
The fertilizer unit was closed in 1998 due to chronic losses. This fertilizer unit of FCI exported urea to West Bengal apart from meeting the urea demand of the farmers in Orissa.
