Revival of closed units of Fertilizer Corporation of India Limited

Revival of closed units of Fertilizer Corporation of India Limited
The Cabinet Committee on Economic Affairs (CCEA) approved the proposal regarding revival of five closed units of Fertilizer Corporation of India Limited (FCIL) at Sindri, Talcher, Ramagundam, Gorakhpur and Korba.
The CCEA approved the waiver of Government of India loan and interest thereon amounting to Rs.10,644 crore. The CCEA approved proposal for intercorporate loan of Rs.171 crore and commitment fee of Rs.25 crore for FCIL to be given by PSUs involved in the revival of FCIL units at Sindri, Talcher and Ramagundam. This would ensure positive net worth for FCIL and enable FCIL to come out of the purview of BIFR, and hasten the process of revival of closed units of FCIL.

The demand-production gap for urea in the country is projected at around nine million tonne during the current plan period, which is likely to go up further by at an average rate of 2-3% per annum. There is a continuous import dependence of the country to bridge this gap. Revival of closed units will ensure larger availability of indigenous fertilizers in the country.

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(Release ID :95895)