Cabinet clears sale of 7.64% equity of NFL; Fertiliser Corp out of BIFR purview

The cabinet committee on economic affairs (CCEA) today approved the divestment of 7.64 per cent paid-up equity capital of National Fertilizers Limited (NFL) comprising approximately 37.4 million shares of Rs10 face value each.

The disinvestment, which will be out of government's shareholding of 97.64 per cent, will help NFL to meet the Securities and Exchanges Board of India (SEBI) regulations regarding public share holding requirements.

NFL had a paid-up equity capital of Rs490.58 crore comprising 490.5 million equity shares of Rs10 face value each as of 31 March 2012.

NFL is a scheduled `A` category Mini Ratna central public sector enterprises (CPSE) under the administrative control of the ministry of chemicals and fertilizers, and is engaged in manufacturing and marketing of urea, bio-fertilisers as also industrial chemicals.

The company has five operating units located at Nangal and Bhatinda in Punjab, Panipat in Haryana and two units at Vijaipur in Madhya Pradesh.

The company is in the process of diversifying into various agri-based businesses. It has one joint venture namely Uravarak Videsh Ltd with RCF and KRIBHCO with equity participation of 33.33 per cent to explore investment opportunities abroad and within the country in nitrogenous, phosphatic and potassic fertilisers. It also renders consultancy services for setting up projects in India and abroad.

Fertiliser Corporation of India Ltd (FCIL), meanwhile, has come out of BIFR purview in a development that would help revival of the Talcher unit  in Odisha, Ramagundam unit in Andhra Pradesh and Sindri unit in Jharkhand.

Announcing this, minister of state for chemicals and fertilisers Srikant Kumar Jena said the BIFR order for de-registration of the FCIL has paved the way for meeting the long standing demand of the people of Odisha for revival of closed Talcher unit of FCIL.

He said that the Talcher unit in Odisha will be revived by Coal India Ltd (CIL) and Rashtriya Chemicals & Fertilizers Ltd (RCF) along with GAIL (I) Ltd. RCF has already sought global bids for setting up of coal gasification and gas purification plants at Talcher and will soon seek LSTK bids for Ammonia and urea plants.

The urea plant will have a capacity of around 1.3 million tonnes per annum, which will help in catering to the supply of urea to eastern sector of the country.

Jena said that the revival of Talcher unit will bring investment of about Rs8,000 crore to Odisha, generate direct and indirect employment in the state and help develop ancillary industry in the region and give a boost to the economy of the state.