The signing of joint venture agreement for the revival of the Fertilizer Corporation of India unit in Ramagundam with the National Fertilizers limited and Engineers India limited has rekindled hopes among the unemployed and former employees.
The Union government had been talking about the revival of the FCI for the last five years and on Wednesday the FCI signed an agreement with NFL and EIL in Noida for the revival of the plant at a cost of Rs. 5,000 crore.
FCI Ramagundam was the first major industry in Karimnagar district. Project work started in 1971 and commercial began in 1980. However, after a few years the unit slipped into the red. The project was completely closed and production stopped from March 31, 1999.Consequently, thousands of employees were forced to take VRS.
The unit was practically abandoned and taking advantage of lack of security, miscreants struck at will, carting away costly machinery and equipment.
The FCI plant is housed in a sprawling 1,500 acres and the township in 2,600 acres. The township had turned into a ghost town following the closure of the plant. FCI is the first coal-based plant in the country to produce fertilizer.
Ironically, poor quality coal, erratic power supply and escalation of production cost during the period pushed the FCI unit to the brink. N.S. Murthy, a former employee, welcomed the agreement. “The government should take up the project with sincerity and simultaneously take up the execution of the plant and also laying of pipeline for the supply of gas.” They said that the completion of the project would take at least five years and it would be possible to start commercial production only if the government allocated gas immediately.
Citing the example of TSGenco’s 2,100 MW gas-based power station at Nedunuru in Thimmapur mandal in the district which has been shelved for the last eight years, the former employees feared that the revival of FCI would also remain a dream if the government failed to allocate gas.
