Government’s plans to increase Investment in Fertilizer Sector
NEW DELHI: The Union Cabinet in its meeting dated 21/06/2015 has approved setting-up of a Brown Filed Ammonia Urea Complex of 8.646 LMTPA urea production capacity in Joint Venture with an estimated project cost of Rs. 4412 Crores. The investment proposed to in JV mode with 48% equity to be allotted on nomination basis to PSUs viz M/s OIL (26%), M/s BVFCL (11%) & Government of Assam (11%). The remaining 52% equity will be allotted to Private/Public entity through open bidding. The investor for 52% equity is yet to be identified.
The Government has also approved revival of Talcher and Ramagundam units of FCIL for setting up of 1.27 MTPA Ammonia-Urea Complex each at a total estimated cost of Rs. 8700 crore and Rs. 5300 crore respectively. Talcher unit to be revived through nomination route by a consortium of PSUs namely Rashtriya Chemicals and Fertilizers, GAIL India Ltd, Coal India Limited & FCIL, and Ramagundam unit to be revived through nomination route by a consortium of PSUs namely Engineers India Limited & National Fertilizers Limited & FCIL. The project activities are in its initial phase.
There is no proposal with the Government to call/invite the private sector/NGOs/SHGs in distribution of Fertilizers.
This information was given by the Minister of State for Chemicals & Fertilizers, Hansraj Gangaram Ahir in response to a question in the Lok Sabha on Tuesday.