The Fertilizer Corporation of India Limited (FCIL)

7.4.1   Fertilizer Corporation of India Ltd. (FCIL) has five units at Sindri (Jharkhand), Talcher (Odisha), Ramagundam (Telangana), Gorakhpur (U.P.) & Korba (Chhattisgarh). These units were shutdown during the period 1990-2002. Government of India (GOI) decided in September 2002, to close operations of of FCIL and release all its employees under Voluntary Separation Scheme (VSS). These units have huge infrastructure facilities like sizable land bank, residential quarters and office buildings, railway siding, tied up sources of electricity and water.

7.4.2  CCEA, in April 2007, had given ‘in principle’ approval to examine the feasibility of reviving units of FCIL and Hindustan Fertilizers Corporation Limited (HFCL) subject to confirmed availability of gas. In October, 2008, the Cabinet had accorded approval to revive FCIL and HFCL units subject to non recourse to Government funding and to consider write off of GOI Loan & interest to the extent required subject to submission of fully tied up proposal for final decision on waiver.

7.4.3       An Empowered Committee of Secretaries (ECOS) was constituted in November, 2008 to evaluate all options of revival of closed units, to decide upon the action to be pursued for seeking investments towards revival of each of the unit and recommend to the Government for approval. The ECOS members were Secretaries of Department of Fertilizers (Chairman), Department of Expenditure, Department of Disinvestment, Planning Commission, Department of Public enterprises, Ministry of Petroleum & Natural Gas. The ECOS after detailed deliberations in various meetings recommended that the revival of these closed units would be through ‘nomination route’ by Public Sector Undertakings (PSUs) and by private sector through ‘bidding route’. The nominated PSUs are Steel Authority of India (SAIL) for the Sindri unit, Rashtriya Chemicals and Fertilizers (RCF), GAIL(I) Ltd (GAIL) & Coal India Limited (CIL) for the Talcher unit and Engineers India Limited (EIL) & National Fertilizers Limited (NFL) for the Ramagundam unit of FCIL with 11% equity to FCIL in lieu of land use and infrastructure that would be provided by FCIL at these locations. ECOS recommended Gorakhpur and Korba Units of FCIL and all three units of HFCL be revived through ‘bidding route’.

7.4.4       The progress of revival of FCIL units is as under:

7.4.4.1    Talcher Unit

The pre-project activities for revival of Talcher unit (Odisha) by the nominated Public Sector Undertakings (PSUs), namely, RCF, CIL, GAIL and FCIL are in progress to set-up a coal-based fertilizer plant.  The selection of Coal Gasification Technology by GAIL is at the final stage.

 

7.4.4.2 Ramagundam Unit

The pre-project activities for revival of Ramagundam unit (Telangana) by the nominated PSUs, namely, EIL, NFL and FCIL are in progress to set-up a gas-based fertilizer plant.  Joint Venture (JV) agreement has been signed by these PSUs on 14.01.2015.

 

 7.4.4.3 Sindri unit

Approved DRS envisaged revival of Sindri unit by SAIL. However, not much progress was made due to non-availability of around 3000 Acres of contiguous piece of land for the Steel Plant due to encroachments.  In the meantime, the due change in its modernization and expansion plan SAIL has taken a view not to pursue the Sindri Revival project further.  Government is exploring the feasibility of revival of Sindri unit, through the ‘bidding route’.

 

 

     7.4.4.4  Gorakhpur unit

M/s. GAIL is planning to lay a gas pipeline from Jagdishpur (Uttar Pradesh) to Haldia (West Bengal).  To make this gas pipeline financially viable, Government is exploring the options of fast-tracking revival of Gorakhpur unit, which is en-route of Jagdishpur-Haldia pipeline(JHPL).

7.4.4.5  Korba unit

The revival of Korba  unit would be taken up later on.