Lok Sabha Question No. 2464 (UNSTARRED), answered on 2021-08-03
Subject: Exclusive Subsidy Policy
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Komati Reddy Venkat Reddy, Manne Srinivas Reddy

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

## LOK SABHA

## UNSTARRED QUESTION NO. 2464 TO BE ANSWERED ON 03.08.2021

## Exclusive Subsidy Policy

2464:

SHRI KOMATI REDDY VENKAT REDDY:

SHRI MANNE SRINIVAS REDDY:

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

- (a) whether the Government has approved any exclusive subsidy policy for urea fertilizer produced through coal-gasification under joint ventures between GAIL India Ltd. Coal India Ltd, Rashtriya Chemicals and Fertilizers Ltd (RCFL) and Fertilizer Corporation of India (FCIL) among others, if so, the details thereof;
- (b) whether some fertilizer companies are reviving their plans by setting up a new greenfield urea plants in some States by increasing the installed capacities of million tonnes per annum and also estimated project costs of the urea projects and set targets, if SO the details thereof and progress made, State wise including the State of Telangana also;
- (c) the amount of funds sanctionedl spent for each project in the last 5 years and current year as on date, state wise; and
- (d) the steps being taken for specific subsidy to promote this innovative technology of coal-gasification for the first time in the country as on date and results achieved, along with funds sanctioned/ spent; State wise?

## ANSWER

## MINISTER OF HEALTH & FAMILY WELFARE AND CHEMICALS & FERTILIZERS (MANSUKH LAL MANDAVIYA)

(a): Yes; Sir. On 28th April, 2021, the Government of India has notified an Exclusive Subsidy Policy for Urea produced through coal gasification route by Talcher Fertilizer Limited (TFL)' , which envisages that the concession ratelsubsidy for the urea produced through coal gasification route by Talcher Fertilizers Ltd (TFL) for a period of 8 years from the date of start of production will be determined by providing 12% Post Tax IRR on equity.

(b): Yes, Sir. The Government of India has decided to   revive Ramagundam, Gorakhpur; Sindri and Talcher Units of Fertilizer Corporation of India Ltd: (FCIL) and Barauni Unit of Hindustan Fertilizer Corporation Ltd. (HFCL) through nomination route by forming Joint Venture Companies of nominated PSUs to set up new AmmoniaUrea plants as per details below: given

| SI No.   | Name of the Joint Venture & Companies Location                   | Name of the Promoter PSUs                                                                                  |   Capacity (Lakh Metric Tonne per annum) |   Estimated project cost (Rs_ In crores ) | Overall progress as on 30.06.2021   |
|----------|------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------|-------------------------------------------|-------------------------------------|
|          | Ramagundam Fertilizers & Chemicals Ltd (RFCL) , Telangana        | Engineers India Limite , National Fertilizers Limited and Fertilizers Corporation of India Limited (FCIL)  |                                     12.7 |                                   6338.16 | Commissioned on 22.03.2021          |
| 2        | Talcher Fertilizers Ltd Talcher, Odisha                          | Rashtriya Chemical & Fertilizers Limited_ Coal India Limited (CIL) and Gas Authority of India Limited_FCIL |                                     12.7 |                                  13277    | 12.59 %                             |
| 3        | Hindustan Urvarak & Rasayan Ltd (HURL), Gorakhpur; Uttar Pradesh | National Thermal Power Corporation Limited (NTPC) , Indian Oil Corporation Limited (IOCLLCIL_FCIL          |                                     12.7 |                                   8603    | 91.80 %                             |
|          | Hindustan Urvarak & Rasayan Ltd Sindri, Jharkhand                | NTPC , CIL, IOCL, FCIL                                                                                     |                                     12.7 |                                   8130    | 90.00 %                             |
| 5        | Hindustan Urvarak & Rasayan Ltd (HURL) , Barauni, Bihar          | NTPC , CIL, IOCL and Hindustan Fertilizers Corporation Limited                                             |                                     12.7 |                                   8388    | 89.40 %                             |

(c): of India has not   sanctioned any funds for  revival of the aforesaid projects. However; with regard to HURL projects, it is stated that CCEA in its meeting held on 01.08.2018 has approved grant of Interest Free Loan (IFL) equivalent to interest during construction amounting to Rs. 1257.82 Crore to Gorakhpur; Sindri revival projects in the last 5 years and current year as on date is as under:

| No_   | Name of the Joint Venture Companies& Location                       |   Amount spent during the last 5 years_(Rs_in crores_ |   Amount spent in current year as on date (Rs in crores |
|-------|---------------------------------------------------------------------|-------------------------------------------------------|---------------------------------------------------------|
|       | Ramagundam Fertilizers Chemicals Ltd (RFCL) , Ramagundam,_Telangana |                                               6202.93 |                                                  135.23 |
| 2     | Fertilizers Ltd (TFL) , Talcher, Odisha                             |                                               1325.13 |                                                  433.6  |
| 3     | Hindustan Urvarak & Rasayan Ltd (HURL), Gorakhpur; Uttar Pradesh    |                                               4871.91 |                                                  331.57 |
|       | Hindustan Urvarak & Rasayan Ltd (HURL) Sindri, Jharkhand            |                                               3959.85 |                                                  351.97 |
| 5     | Hindustan Urvarak & Rasayan Ltd (HURL) Barauni Bihar                |                                               4131.22 |                                                  482.06 |

(d): Talcher Fertilizer Limited (TFL) is the first of its kind project on coal gasification based technology in India. Therefore, an Exclusive Subsidy Policy for Urea produced through coal gasification route by TFL, has been notified by the Government of India on 28th April, 2021 .