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ENS ECONOMIC BUREAU
NEW DELHI, Dec 18: The government has decided to wind up sick Haldia and Gorakhpur units of public sector Hindustan Fertiliser Corporation (HFC), minister for chemicals and fettilisers S S Barnala informed the Rajya Sabha today.
He said the new unit of Kribhco at Gorakhpur was in advanced stage of finalisation and clearance from finance ministry was expected soon. Most of these units have become sick because of obsolete technology resulting in low and poor capacity utilisation, he said, adding coupled with this some of them faced industrial relations problems.
In the case of Ramagundam and Talcher plants of Fertiliser Corporation of India, the sickness has arisen because of coal-based fertiliser technology which had failed the world-over.
Barnala said if gas was made available, government would consider reviving Ramagundum and Talcher units as they could be economically viable. The eight sick units required nearly Rs 3000 crore for revival after writing off of over Rs 5000 crore due by way of loans andinterest, he said, adding it was difficult to generate such huge funds.
He also said government was in the advanced stage of negotiation in setting up gas-based Indo-Oman fertiliser plant. Kribhco would be the Indian partner for the joint venture. Regarding Durgapur fertiliser plant, Barnala said the Rs 88 crore revival package was not worth implementing as it could still produce only at 60 per cent of its capacity which was enough to break even.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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