Amendment to the New Investment Policy

Amendment to the New Investment Policy

An amendment to New Investment Policy (NIP) is under consideration of the Department of Fertilizers. Stating this in a written reply in the Lok Sabha today, the Minister for Chemicals and Fertiliser said the para (ii) of the New Investment Policy (NIP)-2012 has been notified on 7^th October, 2014, so as to ensure seriousness/ credibility of the project proponents under NIP-2012. With the objective it was proposed  that all the project proponents will be required to furnish Bank Guarantee (BG) of Rs 300 crores for each project. The BG will be linked to milestones in the project cycle. Out of Rs. 300 crores, Rs. 100 crores of BG will be released after finalization of LSTK/EPCA contractors and release of advance of the contractor’s amount; Rs. 100 crores of BG will be released on completion of requirements ordering and supply to the site or midpoint of the project cycle, whichever is earlier; and the balance of Rs. 100 crores of BG on completion of the project. PSUs are, however, exempted from furnishing the BG.

(c):       As of now, Department of Fertilizers has received the following Brownfield/Greenfield/Revamp/ proposals/projects:

S. No.	Company	Projects	Ownership	State
1.	Zuari Agro Chemicals Limited	Revamp of Ammonia-Urea project at Zuarinagar.	Private	Goa
2.	IGFL-Jagdishpur	Brownfield Expansion urea project at Jagdishpur.	Private	Uttar Pradesh
3.	CFCL-Gadepan	Brownfield of Ammonia-Urea units at Gadepan-Kota.	Private	Rajasthan
4.	GNVFC-Bharuch	Brownfield Ammonia-Urea project at Bharuch.	State JV	Gujarat
5.	GSFC-Vadodara	Greenfield Ammonia-Urea project at Dahej.	State PSU	Gujarat
6.	MATIX Fertilizers & Chemicals ltd.	Brownfiled Ammonia-Urea Fertilizers Complex at Panagarh.	Private	West Bengal
7.	RCF-Thal	Brownfield Ammonia-Urea Expansion project at Thal.	CPSU	Maharashtra
8.	FACT-Kochi	Brownfield Ammonia-urea project at Udyogamandal, Kochin.	PSU	Kerala
9.	Kanpur Fertilizers & Cements Limited	Brownfield Project at Panki, Kanpur	Private	Uttar Pradesh
10	Bharat Coal Chemicals Ltd	Coal Gasification based Ammonia and urea project, Paradip	Private	Odisha
11	Nagarjuna Fertilizers & Chemicals Ltd.	Brownfield Project at Kakinada, Andhra Pradesh	Private	Andhra Pradesh

(d):   The following steps are being taken by the Government to meet the requirement       

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KSP