New Delhi: The government on Thursday approved the revival of 5 closed units of Fertiliser Corporation of India Ltd (FCIL) and waived Rs 10,644 crore worth of loans and interest provided by the Centre -- a decision which would help boost domestic urea production and cut import dependence.
"The Cabinet Committee on Economic Affairs (CCEA) approved the proposal regarding revival of 5 closed units of FCIL at Sindri, Talcher, Ramagundam, Gorakhpur and Korba," an official statement said.
"The CCEA approved the waiver of government of India loan and interest thereon amounting to Rs 10,644 crore," it added.
The government approved inter-corporate loan of Rs 171 crore and commitment fee of Rs 25 crore for FCIL to be given by PSUs involved in the revival of Sindri, Talcher and Ramagundam.
The decision would "ensure positive net worth for FCIL and enable FCIL to come out of the purview of BIFR and hasten the process of revival of closed units of FCIL", the statement said.
The country's urea production is 21-22 million tonne, while the domestic demand is over 30 million tonne.
"Demand-production gap for urea is projected at around 9 million tonne during the current plan period which is likely to go up further by an average rate of 2-3 percent per annum," the statement said.
The revival of closed units would ensure the larger availability of indigenous fertiliser.
First Published: Thursday, May 9, 2013, 23:31