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Fertilizers Revival of Closed Units of Fertilizer Corporation of India

| Editor: Dominik Stephan

The Cabinet Committee on Economic Affairs (CCEA) approved the proposal regarding the revival of five closed units belonging to the Fertilizer Corporation of India Limited (FCIL) at Sindri, Talcher, Ramagundam, Gorakhpur, and Korba.

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(Picture: PROCESS)

New Delhi/India – The CCEA approved the waiver of Government of India loan and interest thereon amounting to Re 10,644 crore. The CCEA approved proposal for intercorporate loan of Re 171 crore and commitment fee of Re 25 crore for the FCIL to be given by PSUs involved in the revival of FCIL units at Sindri, Talcher and Ramagundam. This would ensure a positive net worth for FCIL and enable FCIL to come out of the purview of the Board for Industrial and Financial Reconstruction (BIFR), and hasten the process of revival of closed units of the FCIL.

The demand-production gap for urea in the country is projected at around nine million tonnes during the current plan period, which is likely to go up further by at an average rate of 2–3% per annum. There is a continuous import dependence of the country to bridge this gap. Revival of closed units will ensure larger availability of indigenous fertilizers in the country.

(ID:39654710)