Lok Sabha Question No. 280 (STARRED), answered on 2017-03-21
Subject: Setting up of New Chemical and Fertilizer Plants
Ministry: CHEMICALS AND FERTILIZERS
Asked by: RENUKA BUTTA

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF FERTILIZERS

## LOK SABHA

STARRED

QUESTION NO.   280*

TO BE ANSWERED ON:

21.03.2017

## Setting up of New Chemical and Fertilizer Plants

## *280 SHRIMATI  BUTTA RENUKA:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a) whether  the  Government has  received  any  proposal  for  setting  up  of  new Chemical and Fertilizer plants in various States of the country;
- (b) if  so,  the  details  thereof  during  the  last  three  years  and  the  current  year, company and State-wise including Andhra Pradesh;
- (c) the names of the companies granted permission to set up the said plants, State-wise; and
- (d) whether the Government  has any scheme  to encourage or provide incentives  for  setting  up  of  such  plants  in  various  parts  of  the  country including in backward region of Rayalaseema in Andhra Pradesh and if so, the details thereof?

## ANSWER

MINISTER OF CHEMICALS & FERTILIZERS AND PARLIAMENTARY AFFAIRS

(SHRI ANANTHKUMAR)

*(a to d).: A Statement is laid on the table of the House.

**********

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF THE LOK SABHA  STARRED  QUESTION  NO.  280*  TO  BE  ANSWERED  ON  21.03.2017 REGARDING 'SETTING UP OF NEW CHEMICAL & FERTILIZER PLANTS'.

(a)  to  (d):  The  Government  has  notified  New  Investment  Policy  -  2012  on  2 nd January,  2013  and  its  amendment  on  7 th October,  2014  to  facilitate fresh investment in urea sector and to make India self-sufficient in the urea sector. Based on NIP - 2012, any interested company can establish urea plants in the country. At present,  Department  of  Fertilizers  has  received  9  proposals  for  setting  up  of Greenfield and Brownfield (Expansion) urea projects which are as under:-

|   Sl No. | Name of Company                                            | Projects                                                             | Types   | State          |
|----------|------------------------------------------------------------|----------------------------------------------------------------------|---------|----------------|
|        1 | Indo-Gulf Fertilizers Ltd. Jagdishpur                      | Brownfield Expansion urea project at Jagdishpur                      | Private | Uttar Pradesh  |
|        2 | Chambal Fertilizers & Chemicals Ltd - Gadepan              | Brownfield Ammonia - Urea units at Gadepan - Kota                    | Private | Rajasthan      |
|        3 | Matix Fertilizers &Chemicals Ltd,Panagarh                  | Greenfield/Brownfield Ammonia - Urea Fertilizers Complex at Panagarh | Private | West Bengal    |
|        4 | Rashtritya Chemicals & Fertilizers Ltd.- Thal              | Brownfield Ammonia - Urea Expansion project at Thal                  | CPSU    | Maharashtra    |
|        5 | Kanpur Fertilizers & Cement Ltd.                           | Greenfield Project at Jabalpur                                       | Private | Madhya Pradesh |
|        6 | Nagarjuna Fertilizers & Chemicals Ltd.                     | Brownfield project at Kakinada, Andhra Pradesh                       | Private | Andhra Pradesh |
|        7 | Fertilizers and Chemicals Travancore Ltd, Cochin Division* | Brownfield NP production at FACT Cochin Division                     | CPSU    | Kerala         |
|        8 | National Fertilizers Limited, Nangal site                  | Greenfield Urea Project at Nangal site, Punjab                       | CPSU    | Punjab         |
|        9 | Rashtriya Chemicals & Fertilizers Ltd.*                    | Brownfield NPK Fertilizer plant at Thal                              | CPSU    | Maharastra     |

As per the terms of the NIP Policy, all the project proponents are required to furnish  Bank  Guarantee  (BG)  of  Rs.  300/-  crores  for  each  project  linked  to milestone in the project cycle. PSUs are, however, exempted from submitting the Bank Guarantee as per amendment to NIP - 2012.

Only,  CFCL  has  furnished  the  Bank  Guarantee  of  Rs.  300  crores  to  the Government  of  India  as  per  the  provisions  of  NIP-2012  and  its  amendment.  On achieving  the  first  milestone  of  the  project,  Rs  100  crores  has  been  released  to CFCL.

MATIX Train-I is reported to be ready for commissioning. ************