18 January 2013

Jagdishpur-Haldia pipeline Progress Update

Jagdishpur-Haldia pipeline is very crucial to revive the fertilizer units located along it. The defunct fertilizer units on this pipeline route are located at Kanpur, Gorakhpur, Barauni, Sindri, Durgapur and Haldia. These fertiliser units were using naphtha as feedstock. Naphtha being the costly feedstock, government had to pay much more subsidy for urea production. Therefore Government has restricted the use of naphtha beyond year 2013.

Fertilizer units located along Jagdishput-Haldia pipeline are owned by as follows:-
1. Kanpur Fertilizers and Cement Limited (KFCL) unit located at Kanpur.
2. Fertilizer Corporation of India Limited (FCIL) units located at Gorakhpur and Sindri.
3. Hindustan Fertilizer Corporation Limited (HFCL) units located at Barauni,  Durgapur and Haldia.

In a Committee of Secretaries (CoS) meeting, the Cabinet Secretary has taken a decision to complete this Jagdishput-Haldia pipeline as early as possible. Revival of these fertilizer plants is being looked at are encouraging signs that the government is actively looking at reducing its import and subsidy burden.

The current year has a budgetary provision of a whopping Rs 21,000 crore for urea import.

Stay tuned to Fertilizer News for more news on Jagdishput-Haldia pipeline !

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