Free Press Journal

Revival of 3 defunct fertiliser units will create jobs: FM


New Delhi: Union Minister for Finance, Arun Jaitley addressing at the 4th Annual Growth Net Summit in New Delhi on Thursday. PTI Photo by Kamal Singh(PTI4_7_2016_000034B)

New Delhi: Finance Minister Arun Jaitley today said revival of Gorakhpur, Sindri and Barauni fertiliser plants will make urea available locally, besides creating jobs in and around those areas.

The Cabinet yesterday approved the revival of these three closed fertiliser units, at an estimated cost of Rs 18,000 crore, as part of its efforts to meet demand of eastern states and make India self-sufficient in urea output.

It approved the revival of three defunct units with a capacity of 1.27 million tonnes per annum each. “Revival of Gorakhpur, Sindri & Barauni fertiliser units would provide employment opportunity & ensure availability of urea locally,” Jaitley said in a tweet.

In another tweet, the Finance Minister said the NDA government’s decision to revive the units is an “effort towards transforming India”.

Fertiliser Corporation India Ltd (FCIL) has two closed urea plants at Sindri (Jharkhand) and Gorakhpur (Uttar Pradesh), while Hindustan Fertilisers Corporation Ltd (HFCL) has one closed factory at Barauni (Bihar).

These three units would be revived by means of Special Purpose Vehicle (SPV) of Public Sector Units (PSUs) — National Thermal Power Corporation (NTPC), Coal India Ltd (CIL), Indian Oil Corporation Ltd (IOCL) and FCIL/HFCL, through ‘nomination route’.

Last year, the government had approved revival of these three units through ‘bidding route’. However, the bidding process could not be carried forward due to receipt of only one application each against ‘Request for Qualifications’ (RFQs) for revival of Gorakhpur and Sindri units of FCIL.