India: Planned Revival of Closed Nitrogen Capacities

The authorities could revive eight closed urea-manufacturing plants. The revival process would begin with three units located at Sindri in Jharkhand, Talcher in Orissa and Ramagundum in Andhra Pradesh. Urea is the most widely traded nitrogen fertilizer.

The National Fertilizers Ltd (NFL) will set up at Sindri a urea manufacturing factory with an annual production capacity of 1.1 million tonnes of urea, about 20 kms away from the district headquarters of Dhanbad. Mumbai-based state-runned Rashtriya Chemicals and Fertilizers (RCF), Gail (India) Ltd and Coal India Ltd (CIL), plan to revive the Talcher nitrogen unit. The Talcher plant is located about 126 kms away from Bhubaneswar, the capital of Orissa State and in the district of Angul. The unit was established at Talcher due to abundance of coal that was used as feedstock. Commercial production of ammonia and urea commenced on 1980 and was closed in 2002. Finally, the National Fertilizers Ltd (NFL) and Engineers India Ltd (EIL) would jointly revive the the Ramagumdam plant, located about 240 kms away from Hyderabad, the capital of Andhra Pradesh State and in the district of Karimnagar. The Indian government has announced plans to sell a 20.4 percent stake in the state-run NFL through a follow on public offering.

The remaining five closed units are expected to be revived by private participation, through a process of bidding. India had produced 21.1 million tonnes urea and imported 5.2 million tonnes to meet its domestic need in 2009-10.

During the fiscal year ended March 31, 2010, the National Fertilizers Limited (NFL) produced 3329,927 tons of urea; 7,131tons of sulphur; 2,669 tons of methanol; 226 tons of bio-fertilizers, and 419,413 normal cubic meter of argon gas.

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