NEW DELHI, Aug 26 � Awaiting Planning Commission�s nod to set up the Fourth Phase of the Namrup Fertilizer plant, a proposal has been mooted to dip into Oil India Limited�s (OIL) pocket to part fund the expansion plan estimated at over Rs 4000 crore.
OIL has been supplying gas to the Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) and has also benefitted from the fertilizer plant, so now that they are in trouble, the oil company may be approached to at least contribute some portion of the required funds, Minister of State for Development of the North Eastern Region, Paban Singh Ghatowar said.
The OIL can be asked to participate in a joint venture with BVFCL, he suggested.
The proposal for setting up of the 4th Unit of the fertilizer plant is currently lying with the Planning Commission pending clearance. The apprehension is that unless the funding is tied up, the proposal may not be cleared.
Ghatowar accompanied by State Minister for Handloom and Textile and Cultural Affairs, Pranati Phukan called on Minister of State for Chemicals and Fertilizer, Srikant Jena to push the project.
Ghatowar said the issue of financing the expansion project is crucial and has to be tied up to ensure its prompt clearance. The BVFCL would turn into a profit making venture once the 4th unit is commissioned, he added.
The Centre had sanctioned Rs 635 crore revamp packages for the Namrup fertilizer plant. It was pointed out that existing Namrup II and III plants are old and based on vintage technology with inherent design deficiency.
The proposal is to set up a new Brown Field Ammonia Urea Plant with a capacity to produce 8.64 lakh MT of urea per annum, consuming 1.72 MMSCMD of natural gas.
The 4th plant is vital to survival of the Namrup fertilizer, as the modern plants are highly energy efficient, and the urea production would double to the existing production level of 3.9lakh MT, consuming the same amount of gas.
The BVFCL is currently not a profit making company, therefore, managing a huge fund to start a new project is the biggest challenge for the company, said Ghatowar.
Ghatowar and Phukan, who jointly briefed the media, said that they also wanted the Chemicals and Fertilizer Ministry to extend the service of the chairman-cum-managing director of BVFCL, Ramashray Singh, as selection of a new CMD is struck in Public Selection Board. In absence of a full time CMD, the company had suffered a huge loss during 2008-2009, it was pointed out.
Further, it was suggested that to mitigate the extreme manpower shortage, the superannuation age of employees can be enhanced to 60 years. The proposal has been cleared by the board of BVFCL.