‘Centre to ensure survival of naptha-based urea units’

The Union Minister for Fertilizers Anantha Kumar has allayed fears on the future of three naptha-based urea manufacturing units in southern India, according to an office-bearer of a workers’ union of one of the units.

The three naptha-based urea manufacturers – Mangalore Chemicals and Fertilizers (MCF) Ltd, Madras Fertilizers Ltd (MFL) and Southern Petrochemicals Industries Corporation Ltd (SPIC) – had stopped operations in October last year as the Centre had asked them to switch over to gas as the feedstock before September 30.

Subsidy withdrawal

Then the government had stated that those who continued with naptha for production of ammonia and urea would not be eligible for subsidy after that. However, these units resumed operations in January with the government agreeing to continue subsidy for 100 days.

KN Suryanarayana, President of Mangala Workers’ Union of MCF Ltd, told

Business Line that the employees in these units are worried about the situation after the expiry of 100 days.

Following this, a delegation of the joint action committee of these units met Anantha Kumar and conveyed their apprehension over the closure of these units.

Minister’s assurance

Suryanarayana, who is the general secretary of the joint action committee, said the Minister told the delegation that he has given permission to start eight new fertilizer plants in the country, and there is no intention to close down the running plants at any cost.

Anantha Kumar also informed the delegation that he has already made a Cabinet note for continuing urea production by the three naphtha-based fertilizer units by using naphtha as feedstock till gas connectivity is provided to them.

The Cabinet Committee on Economic Affairs has also been informed about other options such as transportation of gas from Visakhapatnam to these units.

Anantha Kumar has held three meetings with the Kerala Chief Minister to expedite the work on the Kochi-Mangaluru gas pipeline, Suryanarayana added.