30 January 2013

Revamped NFL plants would save subsidy even with spot-priced imported gas


National Fertilizers Limited (NFL) is a Mini Ratna PSU Company of India. NFL is India's largest PSU in Fertilizers Sector with a turnover of over Rs 7300 crores and an overall annual installed capacity of 32.31 lakh tonnes of Urea. Its three plants located at Nangal, Panipat and Bathinda are about to complete feedstock changeover projects in fourth quarter of the current financial year. This project would cost to NFL about Rs 4066 crore.

The Minister of State for Chemicals and Fertilisers Mr Srikant Kumar Jena said, “Decision regarding allocation of domestic natural gas to three units of NFL is awaited from Ministry of Petroleum & Natural Gas/GAIL. However, NFL has tied up spot gas from M/s GAIL for the requirement at Nangal and Bathinda and with M/s IOCL for the requirement at Panipat, in the absence of allocation of domestic gas for these projects.”

Mr. Jena Stated: “Post commissioning, the total requirement of gas shall be met on spot basis till the allocation of domestic gas is made by the Government and no shortfall with respect to required quantity of gas is anticipated. The present price of spot gas is around USD 16-18/MMBTU against the present price of FO/LSHS of around USD 22-24/MMBTU. Thus a positive saving is expected.”

Thus its clear that National Fertilizers Limited (NFL) would help reduce fertilizer subsidy even if it buys imported gas at current spot prices of USD 16-18/MMBTU to operate its three plants that have implemented feedstock changeover projects.

Website: http://www.nationalfertilizers.com/

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