Utilisation of Assets of Closed/Sick Fertilizer Units

Utilisation of Assets of Closed/Sick Fertilizer Units

The valuation of scrap of machineries and equipments lying in closed units of FCIL and HFCL along with the value of land has been done by M/s Project & Development India Limited (PDIL), a Central Public Sector Enterprise, under the administrative control of Department of Fertilizers and the valuation has been certified by a Government Registered valuer. The details are as under:

The Estimated value of land, usable and unusable items along with the value of land in respect of closed units of FCIL and HFCL

(Rs. in crore)

Name of the Unit	Value of land	Value of usable and unusable items	Total
Sindri, FCIL	1534.14	261.95	1796.09
Ramagundam, FCIL	278.23	133.13	411.36
Talcher, FCIL	143.21	130.52	273.73
Gorakhpur, FCIL	1018.64	83.27	1101.91
Korba, FCIL	456.09	41.28	497.37
Barauni, HFCL	180.15	67.24	247.39
Durgapur, HFCL	629.65	76.62	706.27
Haldia, HFCL	455.68	92.39	548.07
Total	4695.79	886.40	5582.19

The details of closed/sick fertilizer units in the country are as under:

Name of PSU	Name of the closed/ sick Unit	Status
Fertilizer Corporation of India Limited (FCIL)	Sindri	closed
	Gorakhpur	-do-
	Talcher	-do-
	Ramagundam	-do-
	Korba	never commissioned
Hindustan Fertilizer Corporation Limited (HFCL)	Barauni	closed
	Haldia	never commissioned
	Durgapur	closed
Madras Fertilizers Limited (MFL)	Manali, Chennai.	sick
Brahmaputra Valley Fertilizers Corporation Ltd.	Namrup-I	closed
Fertilizers and Chemicals Travancore Limited (FACT)	Ammonia-Urea plant, Cochin	closed

Besides the above, the estimated scrap value of the Namrup-I plant of Brahmaputra valley Fertilizer Corporation Limited (BVFCL), which is lying closed, is estimated at Rs. 14.80 crores adopting the ‘Market Value’ basis of valuation by M/s RBSA Valuation Advisor, a certified Government Valuer. The estimated present value of land of Namrup-I possessed by BVFCL is Rs. 21.20 crores.

The scrap of machineries and equipments of the closed Ammonia-Urea plant at Fertilizers and Chemicals Travancore Limited (FACT) Cochin Division has been valued by M/s Engineers India Ltd. at Rs.26.29 crores, however the Board had felt that the valued assessed by EIL was undervalued and hence the value was not accepted.

Government contemplates gainful utilization of the land and assets lying idle by setting up new urea plants.

As per decision of the Government in 2002, all the fertilizer units of FCIL and HFCL were closed and majority of the employees were released on Voluntary Separation Scheme (VSS) and remaining few employees are being paid regular salary.

There is a proposal to revive all the eight closed urea units of FCIL and HFCL, out of which three units of FCIL are proposed to be revived on nomination basis.  The remaining five units shall be revived through bidding route in which international firms can also participate.

This information was given by the Minister of State for Chemicals and Fertilisers, Shri Srikant Kumar Jena in a written reply in the Lok Sabha today.

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DNM/NSK/DB

(Release ID :98139)