MLC Ivan D’souza has sought the intervention of the Prime Minister Narendra Modi in preventing the closure of Mangalore Chemicals and Fertilizers (MCF) in Panamubur.
Talking to reporters here on Saturday, Mr. D’Souza said MCF, which has been the only unit in the State to produce urea, will stop operations from September 31. This was because of orders from the Centre asking to stop subsidy for Naphtha-based production of urea from October 1. MCF was one of the three Naphtha-based urea producing units in the country that will be affected because of the order, he said.
Mr. D’Souza said the unit has been in operation in Mangalore for the last 38 years and the urea produced here has been meeting the needs of many farmers. Stopping the production will hit farmers hard and the government will be forced to import urea. Mr. D’Souza said it will also impact on lives of over 2,000 employees working in the unit.
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The Government of India, in its policy in 2007, asked fertiliser units to make use of natural gas instead of Naphtha or furnace oil in producing urea. This was followed by the order of the government to give subsidy from October 1 only if the units that use liquefied natural gas (LNG) for urea production.
Mr. D’Souza said MCF has invested Rs. 305 crore for converting the Naphta-based plant into the natural Gas-based one. But due to non-commissioning of the LNG terminal in Kochi through which gas is to be supplied, the plant was not in a position to make use of LNG.