Paswan promises hi-tech urea plant for BVFCL

Namrup, Jun 27 (UNI) Union Minister for Chemicals, Fertilizer and Steel Ram Vilas Paswan today announced a new hi-tech fertilizer unit will be set up here as per the demand of the Brahmaputra Valley Fertilizer Corporation Limited (BVFCL).

The Minister said here that his ministry would soon move the Union Cabinet for setting up of a hi-tech fertilizer unit in Namrup to produce estimated 9 lakh MT urea per year with the same amount of gas (1.72 mmscnd) would be made available to the BVFCL by the Oil India Limited.

He said BVFCL management and PDIL have been asked for a detailed project report for the new plant that might require about Rs 2500 crore investment.

The setting up of the fourth new plant in the BVFCL would revive closed fertilizer units at Sindri, Gorakhpur, Barauni, Durgapur, Haldia, Talchar and Ramagundum.

All these plants were considered for revival by converting them from naptha-based to natural gas based. It is being done in order to achieve the fertilizer production growth of 270 lakh MT of Urea per year by the year 2010-11.

These plants were closed down after they had become unviable due to steep hike in Naptha price. Now the fetilizer ministry has adopted a macro plan to set up coordination between the natural gas producing companies and gas distribution companies to make gas available for fertlizer units in the country.

The fertilizer manufacturing units of the BVFCL were plagued by outdated technologies coupled with adverse pricing policy of the Fertilizer Industries Coordination Committee (FICC).

The authority in the BVFCL has moved the Union Ministry for a latest generation state-of-the art gas-based urea manufacturing unit with a capacity of about 9 lakh tons per annum with the same amount of natural gas currently available from the Oil India Limited (OIL).

The new technology plant proposed by the BVFCL would produce 2600 tonnes of urea per day with the same amount of gas now being utilised by the BVFCL's Namrup I, Namrup II and Namrup III units set up in 1969, 1976 and 1987 respectively.

Even after revamp of the Namrup -III, the total production of Urea from all the plants is just over 4 lakh MT per year.

The price fixed by the FICC based on projected energy norms (covering 34 fertilizer units across the country) has also added to BVFCL's woes, as energy consumption here has been higher than the national average.

He also said the fringe benefits for BFVCL workers would be increased from ten per cent to 22.5 % and at the same time call upon them to put in 100% efforts to achieve 100 capacity utilisation.

UNI XC JYN/SRC1552