India Industrial Update – Revival of closed fertilizer plants

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Fertilizer Plant - Bijapur India
Fertilizer Plant - Bijapur India

Revival of closed fertilizer plants

The Union Cabinet has approved proposals for the revival of closed fertilizer units at Talcher, Ramagundam, Barauni, Gorakhpur and Sindri. Details about Cabinet approvals and present status of revival at these locations are as under:

Talcher and Ramagundam:

The Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 4.11.2011 approved the revival of these units on “nomination route” through PSUs. Rashtriya Chemicals & Fertilizers Limited, Gail (India) Ltd, Coal India Limited and Fertilizer Corporation India Limited (FCIL) have been nominated to revive the Talcher unit while National Fertilizers Limited, Engineers India Limited and FCIL have been nominated to revive the Ramagundam unit. In order to facilitate the revival of closed units of FCIL, the CCEA on 9.05.2013 approved waiver of Government of India loan and interest on FCIL to make the net worth of FCIL positive and to seek its de-registration from Board for Industrial and Financial Reconstruction and paves way for revival of closed units of FCIL. Pre-Project activities to revive these two units are currently in progress.

Gorakhpur, Sindri and Barauni:

The Union Cabinet in its meeting held on 13.07.2016 has approved to revive these closed fertilizer units by means of a Special Purpose Vehicle of Public Sector Units namely, National Thermal Power Corporation, Coal India Limited, Indian Oil Corporation Limited and Fertilizer Corporation India Limited/Hindustan Fertilizer Corporation Limited, through “nomination route” instead of bidding route as approved earlier.

This information was given by the Minister of State (MoS) in the Ministry of Chemicals and Fertilizers Sh. Mansukh L. Mandaviya in the Rajya Sabha today.