India on Monday invited Russian firms to participate in the revival of the eight closed ammonia/urea fertilizer units of State-owned Hindustan Fertilizer Corporation (HFC) and Fertilizer Corporation of India (FCIL).
The reopening of the units can make India self-sufficient in urea production.
“We invite Russian companies to take part in the revival of closed eight fertilizer units owned by HFCL and FCIL. Firms from Russia may indicate their intent for such participation as and when Govt. of India seeks Expression of Interest,” Sham Lal Goyal, Joint Secretary, Department of Fertilizers, said.
These closed units are located at Gorakhpur, Sindhri, Durgapur, Barauni, Haldia, Talcher, Ramagundam and Kobra.
However, a consortium of three public sector units - RCF, Coal India and GAIL - have already agreed to revive the Talcher unit using coal-gasification technology.
India had produced 21.1 million tonnes urea and imported 5.2 million tonnes to meet its domestic need in 2009-10.
Mr. Goyal, who was speaking at the Indo-Russia Forum on Trade and Investment, however, said earlier some foreign parties were approached for the purpose but did not yield any results.
In the event of Russian companies not evincing interest in the revival of the sick fertilizer companies, the task would be undertaken by Indian firms, he said.
The problem of reopening of the closed units, however, lies in inability to ensure steady gas supply to these facilities at a predetermined cost.
Various domestic firms had earlier evinced interests to do the job but backtracked in the absence of steady gas supply assurance by the government.
However, the Department of Fertilizer is in the process of bringing some amendments in the New Investment Policy to address investors’ concern.
This could probably ensure smoke billowing out of the chimneys of the closed units once again.