Lok Sabha Question No. 1360 (UNSTARRED), answered on 2015-07-28
Subject: Status of Naphtha based Plants
Ministry: CHEMICALS AND FERTILIZERS
Asked by: DODDAALAHALLI KEMPEGOWDA SURESH, A. ARUNMOZHITHEVAN, NALIN KUMAR KATEEL

GOVERNMENT OF INDIA

MINISTRY OF CHEMICALS AND FERTILIZERS

DEPARTMENT OF FERTILIZERS

**LOK  SABHA**

**UNSTARRED** QUESTION NO. **1360**

TO BE ANSWERED ON : **28-07-2015**

**Status of Naphtha based Plants**

**1360:	SHRI  D.K. SURESH:**

**SHRI A. ARUNMOZHITHEVAN:**

**SHRI NALIN KUMAR KATEEL:**

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

(a)	whether the Government/Cabinet Committee on Economic Affairs has approved/permitted the continuation of production of urea from Madras Fertilizers Ltd. Manali, Mangalore Chemicals and Fertilizers Limited-Mangalore and Southern Petro-chemicals Industries Corporation-Tuticorin for using Naphtha as feedstock till availability of gas through gas pipeline or by any other means;

(b) 	if so, the details thereof and if not, the reasons therefor and the present status of each of these units;

(c)	the details of urea and other fertilizers manufacturing units/plants using naphtha and fuel as feed stock operating in the country, State/UT and fertilizer-wise;

(d)	the time by which Naphtha based fertilizer units/plants are likely to be converted into gas based; and

(e)	the details of new plants proposed to be set up and time by which these are likely to be set up and made functional, State/UT and fertilizer-wise?

**ANSWER**

MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS

( **SHRI HANSRAJ GANGARAM AHIR)**

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(a) & (b):	Yes, Madam.  As per Cabinet Committee on Economic Affairs (CCEA) decision, the Department of Fertilizers (DoF) has issued notification dated 17 th June, 2015 allowing Naphtha based urea units viz., Madras Fertilizers Limited (MFL) – Manali, Mangalore Chemicals & Fertilizers Ltd. (MCFL) -Mangalore and Southern Petrochemical Industries Corporation Ltd. (SPIC) – Tuticorin to continue production of urea using Naphtha as feedstock till these plants get assured supply of gas either by gas pipeline or any other means.

-: 2 :-

(c) & (d):	At present, there are 30 urea manufacturing units, out of which 27 urea manufacturing units use Natural Gas (using either domestic gas/LNG or both) as feedstock and fuel and remaining three urea manufacturing units use Naphtha as feedstock and fuel, the details of which is annexed.

While MFL-Manali and MCFL-Mangalore have converted their plant to gas as feedstock, SPIC has almost completed conversion activities.  However, at present, the production of urea of these three plants using gas as feedstock is held up due to delay in commissioning of the gas pipeline connectivity.

As far as P&K is concerned, two companies viz., MFL, Manali (NPK 20-20-0-13 and 17-17-17-0) and Gujarat Narmada Valley Fertilizers Company Limited (GNVFC)-Bharuch (NPK 20-20-0-0) are using Naphtha/fuel oil/LSHS as feedstock for production.  MFL has already converted its plant to run on natural gas.  However, gas from IOCL and GAIL will be made available from 2017-18 onwards.  GNVFC has not yet converted its feedstock to Natural Gas for production of P&K fertilizers.  It has not given any date for converting its plant to run on natural gas.

(e):	To facilitate fresh investment in urea sector and to make India self sufficient in the urea sector, the Government notified amendment to New Investment Policy – 2012  on 7 th October 2014.  This Department has received the following 7 proposals for setting up of Greenfield and Brownfield (Expansion) projects:-

|   **S. No.** | **Company**                                        | **Projects**                                              | **Ownership**   | **State**      |
|--------------|----------------------------------------------------|-----------------------------------------------------------|-----------------|----------------|
|           1. | Paradeep Phosphate Limited                         | Greenfield project at Jhabua                              | Private         | Madhya Pradesh |
|           2. | Indo-Gulf Fertilizers Limited -Jagdishpur          | Brownfield Expansion urea project at Jagdishpur.          | Private         | Uttar Pradesh  |
|           3. | Chambal Fertilizers & Chemicals Limited-Gadepan    | Brownfield of Ammonia-Urea units at Gadepan-Kota.         | Private         | Rajasthan      |
|           4. | Matix Fertilizers & Chemicals Limited-II, Panagarh | Brownfiled Ammonia-Urpea Fertilizers Complex at Panagarh. | Private         | West Bengal    |
|           5. | Rashtriya Chemicals & Fertilizers Limited-Thal     | Brownfield Ammonia-Urea Expansion project at Thal.        | CPSU            | Maharashtra    |
|           9. | Kanpur Fertilizers & Cement Limited                | Greenfield Project at Jabalpur                            | Private         | Madhya Pradesh |
|          11. | Nagarjuna Fertilizers & Chemicals Ltd.             | Brownfield Project at Kakinada, Andhra Pradesh.           | Private         | Andhra Pradesh |

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**-: 3 :-**

**Annexure**

| **S. No.**   | **Plant**                                                               | **Location**   | **Sector**   |
|--------------|-------------------------------------------------------------------------|----------------|--------------|
|              | **Gas Based**                                                           |                |              |
|              | Brahmaputra Valley Fertilizers Corporation Limited (BVFCL) – Namrup-II  | Assam          | CPSU         |
|              | Brahmaputra Valley Fertilizers Corporation Limited (BVFCL) – Namrup-III | Assam          | CPSU         |
|              | Indian Farmers Fertilizer Cooperative Limited (IFFCO)-Aonla-I           | Uttar Pradesh  | Cooperative  |
|              | Indian Farmers Fertilizer Cooperative Limited (IFFCO)-Aonla-II          | Uttar Pradesh  | Cooperative  |
|              | Indian Farmers Fertilizer Cooperative Limited (IFFCO)-Phulpur-I         | Uttar Pradesh  | Cooperative  |
|              | Indian Farmers Fertilizer Cooperative Limited (IFFCO)-Phulpur-II        | Uttar Pradesh  | Cooperative  |
|              | Indian Farmers Fertilizer Cooperative Limited (IFFCO)-Kalol             | Gujarat        | Cooperative  |
|              | National Fertilizers Limited (NFL) – Vijaipur - I                       | Madhya Pradesh | CPSU         |
|              | National Fertilizers Limited (NFL) – Vijaipur - II                      | Madhya Pradesh | CPSU         |
|              | National Fertilizers Limited (NFL) – Nangal                             | Punjab         | CPSU         |
|              | National Fertilizers Limited (NFL) – Panipat                            | Haryana        | CPSU         |
|              | National Fertilizers Limited (NFL) – Bhatinda                           | Punjab         | CPSU         |
|              | Krishak Bharati Cooperative Limited (Kribhco)-Hazira                    | Gujarat        | Cooperative  |
|              | Rashtriya Chemicals & Fertilizers Limited (RCF)- Thal                   | Maharashtra    | CPSU         |
|              | Rashtriya Chemicals & Fertilizers Limited (RCF)-Trombay                 | Maharashtra    | CPSU         |
|              | Nagarjuna Fertilizers & Chemicals Limited (NFCL) – Kakinada-I           | Hyderabad      | Private      |
|              | Nagarjuna Fertilizers & Chemicals Limited (NFCL) – Kakinada-II          | Hyderabad      | Private      |
|              | Chambal Fertilizers & Chemicals Limited (CFCL)-Gadepan - I              | Rajasthan      | Private      |
|              | Chambal Fertilizers & Chemicals Limited (CFCL)-Gadepan - II             | Rajasthan      | Private      |
|              | Tata Chemicals Limited (TCL)- Barbala                                   | Uttar Pradesh  | Private      |
|              | Kribhco Shyam Fertilizers Limited (KSFL) - Shahjahanpur                 | Uttar Pradesh  | Private      |
|              | Kanpur Fertilizers & Cement Limited (KFCL), Kanpur                      | Uttar Pradesh  | Private      |
|              | Sriram Fertilizers & Chemicals Limited (SFC) – Kota                     | Rajasthan      | Private      |
|              | Zuari Agro Chemicals Limied (ZACL) – Goa                                | Goa            | Private      |
|              | Gujarat Narmada Valley Fertilizers Company Limited (GNVFC)-Bharuch      | Gujarat        | State JV     |
|              | Gujarat State Fertilizers & Chemicals Limited (GSFC)-Vadodara           | Gujarat        | State PSU    |
|              | Indo-Gulf Fertilizers Limited - Jagdishpur                              | Uttar Pradesh  | Private      |
|              | **Naphtha based**                                                       |                |              |
|              | Mangalore Chemicals & Fertilizers Limited (MCFL)- Mangalore             | Karnataka      | Private      |
|              | Madras Fertilizers Limited (MFL)-Manali                                 | Tamil Nadu     | CPSU         |
|              | Southern Petrochemicals Industries Limited (SPIC)-Tuticorin             | Tamil Nadu     | Private      |

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