Madras Fertilizers Ltd. (MFL) has urged the Centre to allow it to resume production of urea using naphtha as feedstock. It has also sought subsidy for it.
Out of 30 fertilizers firms in the country, only three are using naphtha as feedstock since they do not have access to natural gas. MFL operations came to a halt on April 17 as the 100 days production order issued by the Department of Fertilizers expired on April 16. A representative of Joint Action Committee of Naphtha-based Fertilizers Employees Union said that the frequent shut down of process plants handling hazardous chemicals would lead to deterioration of plant and machinery. Besides, it would also result in additional expenditure of around Rs.20-30 crore for resuming operations. The company might not be able to resume operations immediately as the plant maintenance work would go on for another 10 days. However, there was no change in the annual production target of 4.87 lakh tonnes, sources said.
