GOVERNMENT OF INDIA

MINISTRY OF CHEMICALS AND FERTILIZERS

LOK SABHA

UNSTARRED QUESTION NO: 3506

ANSWERED ON:10.12.2009

SICK PUBLIC SECTOR FERTILIZER UNITS

JAGDISH SHARMA

(a) whether the Government has formulated any policy to let the private sector run the sick public sector fertilizer units on revenue sharing basis in order to revive them;

(b) if so, the details thereof along with the detailed out line of this policy;

(c) whether the assessment of the sick public sector production units has been done before contemplating on the said policy; and

(d) if so, the total assets of these units as of now and the time by which such assessment was done and the institute involved in this regard?

Will the Minister of CHEMICALS AND FERTILIZERSbe pleased to state:- 

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

(SHRI SRIKANT KUMAR JENA)

(a) to (d): The Government has decided to explore the feasibility of revival of the closed public sector fertilizer units of Hindustan Fertilizer Corporation Limited (HFCL) and Fertilizer Corporation of India Limited (FCIL) subject to assured availability of natural gas, to meet the emerging demand production gap of urea in the country. The Government has constituted an Empowered Committee of Secretaries (ECOS) with the mandate to evaluate all investment options for revival of the closed units of FCIL/HFCL and to make suitable recommendations for consideration of the Government. ECOS has already considered various possible investment options for revival of each of the closed units and have finalized its recommendations regarding the suitable financing option. The recommendations of ECOS are under consideration of the Government