06 September 2016

Talcher Fertilizer will be functional by 2018, government announced

The Union Government has announced to produce Urea from Talcher Fertilizer by using coal gassification technology from 2018. Once operation is resumed, the plant will annually produce 13 lakh tonne of urea per annum. Government plans to laid foundation stone in November this year.

Union Petroleum Minister Dharmendra Pradhan has informed that Urea produced by this coal gassification technology will cost Rs 2 to 3 thousand less per tonne and farmers will get the benefit from this.

Present NDA Government has decided to revive the sick urea units in Uttar Pradesh(Gorakhpur), Bihar (Barauni), Odisha (Talcher) and Jharkhand (Sindri) by investing Rs 40000 crores. This Talcher Revival Project will cost Rs 9000 crores to the Government.

If we look back to Talcher Fertilizer (Odissa), it started urea production in 1980 with the capacity of 1500 tpd Urea and 900 tpd Ammonia. At that time the company had 1400 permanent employees and 3000 casual workers.

The company declared sick in 1991 by the government and sent it to the Board of Financial and Industrial Reconstruction (BIFR) for making a survival program. Though production continued till 1999, when the NDA government ordered to stop manufacturing urea from the plant. As a result, about 1200 employees were given voluntary retirement from the plant in 2002.

Stay tuned to the "Fertilizer News" for more news on Fertilizer sector.

31 August 2016

Indian Fertilizer Industry is in doldrum, now Birlas want an exit from Fertilizer Business

Indo Gulf Fertilizer, a subsidiary of Aditya Birla Nuvo is planning to exit low margin fertilizer business. Last month only, Tata Chemicals had sold its fertilizers business to Norway's Yara Chemicals for Rs 2670 crores.

Tatas and Birlas are large established players in fertilizer industry and they are leaving the industry means a serious condition. Infact Government is not fulfilling it's promises. There is no guarantee of capital gain which was promised. Subsidy payments get delayed for several months due to which companies faces cash flow problem. Birla fertilizers had earnings of Rs 209 crores on revenues of Rs 2498 crores which comes to a return of 11% in FY16. One can earn this much of money from bank deposit without taking any tension of running a large factory.

Indo Gulf Fertilizer is India's 8th largest Urea producer and they are thinking to leave the industry. As per a banking source, sale would be complete by the next financial year.

On the other hand some of the industrialists are pouring huge amount in the fertilizers industry. Chambal group is investing Rs 5000 crores to set up a plant and a multinational purchasing Tata Chemicals.

Stay tuned to the "Fertilizer News" for more news on Fertilizer sector.

15 July 2016

Matix Fertilisers and Chemicals Limited facing slow start

Matix Fertilisers and Chemicals Limited, promoted by Kanodia family of the Datamatics Group, facing a slow start due to partial availability of gas from Essar Oil Ltd's Raniganj field.

Essar Oil Ltd. has commenced supply of CBM, presently at around 200,000 scmd, for pre-commissioning activities to Matix Fertilisers.

The stranded Rs 6000 crore Marix Fertilizers that is wholly dependent on the scaling up of CBM production from Essar Oil, is the world’s largest single stream 1.3 MTPA urea plant and the first designed for CBM as the feedstock. 

The plant needs 2.4 mmscmd of gas but Essar will be able to ramp up production to 2 mmscmd only by March, 2017. Further the unit can go into full production only by mid 2017-18 when output will be ramped up further from the CBM field.

Stay tuned to the "Fertilizer News" for more news on Fertilizer sector.