The Centre will take up revival case of Korba unit of the Fertilizer Corporation of India limited (FCIl) later on.
In view of the continuous losses of FCIl and Hindustan Fertilizer Corporation limited (HFCl) stemming from technical and financial non viability of operations, Government decided to close down all five units of FCIl viz Talcher (Odisha), Ramagundam (Andhra Pradesh, now Telangana), Gorakhpur (Uttar Pradesh), Sindri (Bihar, now Jharkhand) and Korba (Madhya Pradesh, now Chhattisgarh) and three unit of HFCl viz. Barauni (Bihar), Durgapur & Haldia (West Bengal) in 2002.
After closure of units, there was no significant addition to the indigenous urea production capacity. However, the demand increased steadily, this had led to a situation where the country had to depend upon import of urea.
In addition to these there are three fertilizer public Sector Undertakings (PSUs) which are sick at present these are Brahmaputra Valley Fertilizer Corporation limited (BVFCl) (Namrup, Assam), Fertilizers and Chemicals Travancore limited (FACT)( Kochi, Kerala) and Madras Fertilizer limited (MFl)(Chennai, Tamil Nadu).
In 2008, Cabinet approved to revive all units of FCIl and HFCl subject to non-recourse to Government funding and to consider write off of GOI loan & interest to the extent required, subject to submission of a fully tied up proposal for final decision on waiver. The revival of these closed units would be through nomination route by PSUs and through bidding route by private sector.
Sindri, Talcher and Ramagundam Units of FCIl to be revived on nomination basis and Gorakhpur & Korba units of FCIl and Durgapur, Haldia, Barauni units of HFCl to be revived through bidding route.
This information was given by the Minister of State for Chemicals & Fertilizers Hansraj Gangaram Ahir in reply to an unstarred question in the lok Sabha on Tuesday.