Aiming to make the country self-sufficient in urea, the Fertiliser Ministry has requested the Petroleum Ministry to allocate 24.2 mmscmd of gas from 2015-16 fiscal to facilitate setting up of new plants and capacity expansion.

The Ministry has asked for the allocation of 24.2 million standard cubic meter per day (mmscmd) of gas to set up two greenfield urea projects, expand the output of seven existing units and for the revival of two closed urea plants, sources in the Fertiliser Ministry said.

“This firm allocation of gas required from 2015-16 fiscal onwards will facilitate financial closure of the projects and will make the country self-sufficient in urea,” the sources said.

The request made by the Fertiliser Ministry will be taken up by the Empowered Group of Ministers (EGoM) on gas, which is headed by the Finance Minister, Mr Pranab Mukherjee.

According to sources, the EGoM will consider the allocation of cheap domestic gas or swapping of gas with the cheapest domestic gas. About 80 per cent of the country’s urea production is gas-based.

The EGoM were earlier scheduled to meet on February 14 to consider changes in the natural gas allocation policy, but the meeting has been postponed and is likely to take place by the end of this month.

Currently, domestic production of the important nitrogenous fertiliser, urea, is stagnant at 21-22 million tonnes against a demand of 27-28 mt.

Related Topics