Wednesday, August 12, 2015

PSU revival: Four PSUs to form JV for Talcher urea plant

STATE-owned Coal India Limited, gas utility GAIL and fertiliser majors RCF and FCIL will form a joint venture for revival of Talcher urea plant in Odisha, Parliament was informed.
Earlier, there was proposal to form two joint ventures for the revival of the ailing PSU in Odisha.
"A Memorandum of Understanding was signed amongst Gas Authority of India Ltd (GAIL), Rashtriya Chemical Fertilizer (RCF), Food Corporation of India (FCIL) and...
Coal India Ltd (CIL) on September 5, 2013 for setting up of a surface-coal gasification based urea, ammonium nitrate and chemical complex in the site of Talcher unit of FCIL through formation of two joint venture companies," coal and power minister Piyush Goyal said in a written reply to the Rajya Sabha.
But now, it is proposed to form one joint venture company, the minister said. The minister added that the proposal to form JV company is subject to technical and financial viability through preparation of a detailed feasibility report (DPR).
"The proposed Joint Venture company is yet to be registered," the minister said.
Coal Ministry agreed to allot a coal block to the proposed joint venture company on formation of the same and finalisation of techno-economic feasibility report.
The board of directors of Coal India Ltd had last year given its in-principle nod for these JVs. A consortium of RCF, GAIL, CIL and Fertiliser Corporation of India Ltd (FCIL) had agreed to invest Rs 8,000 crore for the revival of this urea plant with a production capacity of 1.2 million tonnes per annum.
An MoU was signed to form two separate joint ventures to revive this plant and also build a power plant and coal washery facility at the site.
The first JV would be for upstream coal gasification with GAIL having a majority stake. The second JV would be for urea-cum-ammonia nitrate complex with RCF and CIL being major stakeholders, CIL had said.
Earlier,  minister for chemicals & fertilizers Ananth Kumar held a joint review meeting on September 26 on the issue of revival of the sicj PSU with MoS (independent charge) petroleum Dharmendra Pradhan. Secretary in the ministry of coal and CMD of Coal India Limited (CIL), secretary, department of fertilizers and other officials were also present in the meeting. The minister said an investment of about...
Rs 9,000 crore is proposed to be made towards reviving these projects.
Ananth Kumar expressed the hope that the development and extension of Jagdishpur –Haldia natural gas pipeline in the northern and eastern regions and Dhabol- Bangalore pipeline in the southern region are expected to give a fillip to fertilizer plants and other industries along their way.
The Talcher Fertilizer Unit, which has been shut down in 2002, will start production from 2018, the minister said.
There are seven public sector undertakings (PSUs) in the fertilizer sector having total of 23 manufacturing plants, and out of which only six plants are in profit.
The PSUs which are operating in the fertilizer sector are Rashtriya Chemicals & fertilizers (RCF), National Fertilizers Ltd (NFL), Madras fertilizers Ltd (MFL), Fertilizers And Chemicals Travancore (FACT), Brahmaputra Valley Fertilizers Corporation Ltd (BVFCL), Fertilizers Corporation of India Ltd (FCIL) and Hindustan Fertilizers Corporation Ltd (HFCL). As many as ten fertilizer plants out of 23 operated by state-run companies are closed, while 7 others are suffering losses.

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