Lok Sabha Question No. 83 (STARRED), answered on 2016-11-22
Subject: Fertilizer Plants in Foreign Countries
Ministry: CHEMICALS AND FERTILIZERS
Asked by: JAY PRAKASH NARAYAN YADAV

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA

STARRED QUESTION NO. 83*+

TO BE ANSWERED ON:

22.11.2016

## Fertilizer Plants in Foreign Countries

## +* 83    SHRI  JAI PRAKSAH NARAYAN YADAV:

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

- (a) whether  Indian entities are being encouraged  to  facilitate setting up  of urea/fertilizer plants abroad and if so, the details thereof;
- (b) whether any agreement has been inked between Morocco and Krishak Bharati Cooperative (KRIBHCO) for setting up of fertilizer plant and if so, the location identified and the time by which production is likely to commence;
- (c) whether the Government has formulated any concrete action plan for reviving the fertilizer plants lying closed in the country and if so, the details thereof; and
- (d) the  present  status  thereof  along  with  the  closed  fertilizer  plants  identified  for revival?

## ANSWER

MINISTER FOR CHEMICALS & FERTILIZERS AND PARLIAMENTARY AFFAIRS

(SHRI ANANTH KUMAR)

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

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## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  LOK  SABHA STARRED QUESTION NO +*83 TO BE ANSWERED ON 22.11.2016 REGARDING FERTILIZER PLANTS IN FOREIGN COUNTRIES

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(a): Yes  Madam.  The  Government  has  been  encouraging  Indian  Companies  to establish  Joint  Ventures  abroad  in  Countries  which  are  rich  in  fertilizer  resources  for production facilities with buy back arrangements and to enter into long term agreement for  supply  of  fertilizers  and  fertilizer  inputs  to  India.  Further,  the  Department  is  also working  with  the  goal  of  having  access  to  acquisition  of  the  fertilizer  raw  materials abroad by Indian entities. The  country  is  facing  shortage  of  natural  gas,  which  is  the preferred feed stock for production of nitrogenous fertilizers, a near total dependence on imports  for  Phosphatic  fertilizer  and  its  raw  materials  and  full  import  dependence  for Potash.

(b):  Yes, Madam. KRIBHCO has signed a Term Sheet in mid of 2016 with a Moroccan company for setting up a NPK plant. The details are being worked out. The plant will be located in Nellore district of Andhra Pradesh. The production is expected by year 2019.

(c) & (d):  Yes, Madam. Government has approved to revive five closed fertilizer units of the Fertilizer Corporation of India Ltd (FCIL)/Hindustan Fertilizer Corporation Ltd.(HFCL) by  setting  of  new  urea  plants  having  capacity  of  producing  1.27  Million  Metric  Ton (MMT)  Urea  per  annum  at  each  of  the  five  units  namely  Talcher,  Ramagundam, Gorakhpur and Sindri units of FCIL and Barauni unit of the HFCL. Pre-Project activities for these units are currently going on. Unit wise Details and present Status of the revival plan are as under:

## Talcher Unit of FCIL:

- Talcher Unit of FCIL is being revived on 'Nomination basis' by a Consortium of PSUs namely RCF, GAIL, CIL and FCIL by setting up a coal based fertilizer plant of 1.27 MMTPA capacity.
- JV Company named 'Talcher Fertilizers Limited (TFL)' has been formed.

- Selection  of  Coal  Gasification  Technology  is  under  progress.  A  revised  EoI  for selection  of  Coal  Gasification  Technology  has  been  published.  Six  parties  have responded against this EoI.

## Ramagundam Unit of FCIL:

- Ramagundam unit of FCIL is being revived on nomination basis by consortium of PSUs namely Engineers India Limited (EIL),  National  Fertilizers  Limited  (NFL) and FCIL by setting up a gas based fertilizer plant of 1.27 MMTPA capacity.
- JV Company named 'Ramagundam Fertilizers & Chemicals Limited' has been formed.
- Hon'ble Prime Minister has laid foundation stone for the Ramagundam project on 07-08-2016.
- The pre-project activities are going on.
- The project is likely to be commissioned by 30.9.2018.

## Gorakhpur, Sindri units of FCIL & Barauni Unit of HFCL:

- For  the  timely  revival  of  these  units,  the  Union  Cabinet  in  its  meeting  held  on 13.07.2016  approved  to  revive  Gorakhpur,  Sindri  &  Barauni  units  by  means  of  a Special  Purpose  Vehicle  (SPV)  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'. In pursuance to the decision of the Government of India, CIL, & NTPC  have  registered  a  SPV  by  name  Hindustan  Urvarak  &  Rasayan  Limited (HURL) for revival of closed urea plant of FCIL at Gorakhpur and Sindri.  Hon'ble Prime Minister has laid foundation stone for Gorakhpur  project on 22-07-2016.  The pre-project activities are going on.

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