Members of a joint action committee of three naphtha-based urea-producing units in South India have urged the Centre to continue subsidy for the plants.

Mangalore Chemicals and Fertilizers (MCF), Madras Fertilizers and Southern Petrochemicals Industries Corporation had stopped production at their naphtha-based urea plants in Mangaluru, Chennai and Tuticorin, respectively, in October, after the Government asked them to switch to gas as the feedstock.

Those who continued with naphtha for production of ammonia and urea would not be eligible for subsidy after that, the Government had said. The units resumed operations recently after the Centre decided to continue subsidy for 100 days.

The delegation representing workers of the three units met Union Chemicals and Fertilisers Minister Ananth Kumar in this regard recently.

Restarting urea plants

Thanking Kumar for allowing subsidy for 100 days, KN Suryanarayana, general secretary of the joint action committee, told Business Line that employees are worried about the situation after the 100 days, and have requested the Government to continue the subsidy.

The minister told the delegation that he had put a lot of efforts to get the Cabinet Committee on Economic Affairs’ permission to restart the urea plants. Ananth Kumar has assured the delegation that he would take suitable steps to continue the subsidy, according to Suryanarayana.

He added that the MCF plant in Mangaluru, which began the process of lighting boiler and furnace on January 7, came out with finished product (urea) by January 12.

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