Rasayani unit of HOCL on the block, Kochi unit still operating: minister

The minister stated that ‘in principle’ approval has been accorded for strategic divestment of HOCL after the process of disposing unencumbered land and other assets at Rasayani is completed. The restructuring plan involves closing down the operations of all plants at Rasayani unit of HOCL except N2O4 plant, which stands transferred to Isro on 'as is where is' basis. 

It also includes disposal of plant and machinery and other movable assets; giving VRS /VSS to employees at Rasayani; sale of 442 acres of land to BPCL; appointment of NBCC as LMA for disposal of balance encumbrance free land at Rasayani for discharging its liabilities, he stated.

Gowda further stated that no proposal has been received from the government of Kerala to take over the Kochi plant of HOCL.

For sick / loss making PSUs like HOCL, he stated, the government takes decision regarding its future based on the various factors, including financial viability on a case to case basis in consultation with other departments, viz, DPE, DIPAM, NITI Aayog etc.

Replying to a question on reopening and re-modernising of closed fertilizer PSUs, in Rajya Sabha today, Gowda stated that the government has decided to revive Barauni unit of Hindustan Fertilizer Corporation Limited (HFCL) and Gorakhpur, Sindri, Talcher and Ramagundam units of Fertilizer Corporation of India Limited (FCIL) on nomination route by setting up new ammonia urea plants of 12.7 LMTPA capacity at each location.

Barauni unit of HFCL and Sindri and Gorakhpur units of FCIL are being revived by  Hindustan Urvarak and Rasayan Limited (HURL), a joint venture of National Thermal Power corporation Limited (NTPC), Coal India Limited (CIL), Indian Oil Corporation Limited (IOCL), FCIL and HFCL.

The Talcher unit is being revived by Talcher Fertilizers Limited (TFL), a joint venture of Rashtriya Chemicals and Fertilizers Limited (RCF), CIL, Gas Authority of India Limited (GAIL) and FCIL. The Ramagundam unit of FCL is being revived by Ramagundam Fertilizers and Chemicals Limited (RFCL), a joint venture of Engineers India Limited (EIL), National Fertilizers Limited (NFL) and FCIL, he added. 

The minister further stated that after the commissioning of these five units, the total annual production of urea would increase by 63.5 lakh tonnes. The excess demand over indigenous production would be met through imports.

Gowda stated that the usable assets, townships, hospitals, etc are being handed over to the new joint venture companies. Further, old plants of HFCL and FCIL have been sold through e-auction by Metal Scrap Trade Corporation Limited (MSTC), under the supervision of Projects & Development India Limited (PDIL), as approved by the CCEA/Cabinet. He also stated that there was no proposal to hand over the assets of HFCL and FCIL to state governments.