CIL, NTPC, IOC to partner for FCIL revival

Coal India Limited (CIL), NTPC and Indian Oil Corporation (IOC) will each hold 29.7 percent share in the joint venture (JV) to be formed to revive three units of the Fertilizer Corporation of India Limited (FCIL). Two public sector fertilizer units — FCIL and Hindustan Fertilizer Corporation Ltd. (HFCL) — would hold the balance equity. In May this year, a JV was signed between NTPC and CIL for revival of two units of FCI at Sindri in Jharkhand and Gorakhpur in Uttar Pradesh.

Subsequent to this, IOC, FCIL and HFCL joined the JV even as another unit — Barauni Fertilizer unit of HFCL — in Assam — was added to this. Hence, a supplementary JV was signed recently by all five entities. Enquiries revealed that the details are still being worked out. FCI is India’s first fertilizer unit set up in 1954. It was modernised in 1974, but closed in 2002 due to obsolescence and consequent sickness. All employees were separated through a voluntary separation scheme.

However, in 2007, it was decided to revive these units in view of urea shortage. In May 2015, the Centre initiated a move to revive the units. Urea shortage aside, it was also felt that the availability of infrastructure would make the revival effort worthwhile. A substantial amount of land, railway link up, water and electricity facility was already being tapped.

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