Revival of the Barauni and Gorakhpur Fertilizer Units
The
Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today
gave its approval for the revival of the closed unit of the Barauni of
the Hindustan Fertilizer Corporation Ltd. (HFCL) and Gorakhpur
Fertilizer Unit of Fertilizers Corporation India Limited.
These units were lying defunct and were not in operation since 2004.
Therefore, the units and other facilities were lying unutilized. It is
important to mention here that there is no indigenous urea units in the
Eastern part of the country except a small unit at Namrup - Assam. There
has been no Greenfield or Brownfield urea unit in last 19 years. The
total requirement of urea in the country is around 300 Lakh MetricTonne
(LMT) out of which 220-230 LMT of urea is produced annually from the
indigenous urea units and balance is being met from the international
market at Western and Eastern Ports. The demand of urea of the Eastern
region, at present is being met either from the Western ports or from
the units located in Western and Central India involving long distance
transportation. Long distance transportation of urea riddled with high
expenditure in terms of high freight subsidy as well as logistics
problems. The revival of these units will ensure timely availability of
urea from these units to the eastern region. Apart from growth of the
regional economy of the country, each unit will be revived through
bidding route with an approximate investment of Rs. 5000 – 6000 crore,
and create employment opportunity for 500 direct and 2500 indirect
workers.
This decision along with the CCEA’s decision today on gas pooling for
the urea sector will enable these units to get gas at pooled price on
their revival, making them globally competitive.
AKT/NT/SH/SK
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