With the Central Government setting into motion an action plan for its ‘Make in India’ initiative, a section of the fertilizer industry, suffering from ‘ad hoc’ measures undertaken by the previous government, has urged the Prime Minister to look into their problem and help revive the industry as well as to prevent imports.
As production of urea and phosphatic and potassic (P&K) fertilizers had been suspended by more than four companies, the shortfall has been met by imports. And, the industry players are now seeking relief under the ‘Make in India scheme’ to ensure that the country becomes self-reliant.
“Despite fertilizer being a core sector, the previous regime cut off gas supply to non-urea manufacturer Deepak Fertilizers, which has shut down its three lakh-tonne capacity since May. Two others - Rashtriya Chemicals and Fertilizers and Gujarat State Fertilizers Corporation may - go the same way if the gas supply is stopped to them on some ground,” said fertilizer industry officials.
Other units suffering the previous regime’s legacy are Madras Fertilizers, Fertilizers and Chemicals Travancore, Mangalore Chemicals and Fertilizers and Southern Petrochemicals Corporation, all major manufacturers of urea and other complexe fertilizers. These units used naphtha as feedstock. Since their production cost was higher, the government did not grant subsidy for them leading to closure, they said.
“The suspension of production in these units amounts to a loss in production of more than 15 lakh tonnes of fertilizers, thereby leading the country into the hands of international cartels and predators who can force the government into toeing their line. Since we already have the capacity, why not to utilise it to achieve food security and even exporting to other countries,” the officials added.
‘Make in India’ won’t succeed without addressing the problems of the existing units, they added.
