PMO asks Fertiliser Ministry for status report on urea investment policy
New Delhi: Prime Minister's Office (PMO) has asked the Fertiliser Ministry for a status report on the revival of closed or sick urea plants and the proposed New Urea Investment Policy.
PMO last week asked the Department of Fertilisers to submit an updated brief on the status of possibilities for investing in fertiliser assets in foreign countries.
"PMO has asked the ministry to send a status note on the new urea investment policy. It has also asked for a status report on the revival of sick or closed urea plants by Monday," a source in the Fertiliser Ministry said.
The PMO also wants the ministry to brief it on the possibilities it has identified for acquiring fertiliser assets abroad, the source said.
In February, a Group of Ministers (GoM), headed by the then Finance Minister Pranab Mukherjee, had approved a new investment policy for the urea sector, in order to make the nation self-sufficient in the key soil nutrient.
The government in 2008 had announced a 'New Investment Policy' to boost urea production, but the scheme failed to attract fresh investments.
"The GoM had suggested some changes in the new policy, following which it has been put up for inter-ministerial consultations that are almost over and the policy is in its final stages. After this it will be sent for the approval of the CCEA," a Fertiliser Ministry official said.
The Draft Rehabilitation Scheme (DRS) for the revival of closed units of Hindustan Fertiliser Corporation Ltd (HFCL) and Fertiliser Corporation of India Ltd (FCIL) is presently under the consideration of Board for Industrial and Financial Reconstruction (BIFR).
Earlier this month, Minister of State for Fertilisers Srikant Jena said that BIFR approved the revival of 3 closed urea units of FCIL through joint venture/special purpose vehicle (SPV) route by the nominated state-run firms.
Last month, the Cabinet Committee on Economic Affairs (CCEA) had approved the revival of the Talcher urea plant along with four other closed units of FCIL at Sindri, Korba, Ramagundam and Gorakhpur.