Saturday, October 31, 2015

Good news: FCI set for revival; will Centre take similar policy for others

REKINDLING hopes for the employees of ailing PSUs, the Fertilizer Corporation of India (FCI) unit in Ramagundam, Karimnagar in Telangana will be revived. The new unit will be known as Ramagundam Fertilizers and Chemicals Limited (RFCL). The revival exercise will cost Rs 4,694 crore in Ramagundam Township following environmental clearance by the Union government.
The RFCL would be revived...
by using gas as fuel for the production of ammonia and urea.
But the government did not make any allotment of gas for the project till now. But, the officials are confident of allotment of gas from the Mallavaram (Andhra Pradesh) and Bhilwara (Rajasthan) pipeline project (KG basin).
 The National Fertilizers Limited (NFL) and Engineers India Limited (EIL) have signed joined venture (JV) for the revival of FCI in Ramagundam.
It was decided to produce fertilizers by using gas instead of coal which was used earlier at this plant.
The concerned agencies have called tenders for the removal of scrap at a cost of Rs 130 crore.
Telangana State Pollution Control Board had conducted environmental public hearing in March this year. The authorities have also called for tenders for the modifications of the existing township to provide proper accommodation to employees and others.
 So far, the RFCI had secured environmental clearance and is waiting for the allotment of gas and water. The state government is mulling to lay foundation stone for the project tentatively in the month of December this year.
The NFL and EIL had decided to complete install new plant for the generation of fertilizers by using the gas.
Though the NDA government doesn’t have any clear cut policy vis-à-vis the ailing PSUs, last year the government approved the closure of six firms under the department of heavy industry has been circulated. The list includes Hindustan Photo Films, HMT Bearings, HMT Chinar Watches, Tungbhadra Steel, Hindustan Cable and the iconic HMT Watches. However, reports also say that the PMO is opposed to closure of the PSUs and has sought a roadmap for the revival of the ailing entities from the respective ministries. The Cabinet, earlier, also approved an offer for voluntary retirement scheme (VRS) option at the 2007 pay scale for around 3,600 employees in these firms, along with additional benefits such as encashment of leave and gratuity.
Government data shows there are 61 sick central public sector enterprises (CPSEs) that had 1.53 lakh employees as on March 31, 2013. The government has been paying the salaries of all these employees largely through the budget.
A committee of secretaries headed by Cabinet secretary also approved new parameters for revival of sick PSUs.
The government has also set up a committee under the NTPC chairman to explore the possibility of setting up a separate entity funded by financially strong CPSEs to look at management and revival of sick companies. Profitable PSUs have also offered to bail out loss-making companies provided their efforts are counted toward mandatory 2 per cent corporate social responsibility (CSR) norms.
Earlier, Minister of state for heavy industries & public enterprises G M Siddeshwara said that out of 55 central public sector enterprises (CPSEs) examined by the government, revival or restructuring for 46 units and closure of nine units were approved.
The total losses incurred by the seven PSUs were at Rs 3,139 crore over a period of time.


  1. please do some thing early as possible we are not getting selaary and other benifit

  2. The DHI bureaucrats are not allowing to sick psu revival.They are working for MNC's,not for India and they are not save the India psu.