Govt to set up committee to revive closed fertilizer units

Govt to set up committee to revive closed fertilizer units
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First Published: Fri, Oct 31 2008. 02 43 PM IST
Updated: Fri, Oct 31 2008. 02 43 PM IST
PTI
New Delhi: The government will set up a committee of secretaries, which will suggest financial models to revive closed fertilizer units of FCIL and HFCL.
Besides, it will also go for reviving a Barauni unit of HFCL through a special purpose vehicle (SPV), promoted by fertilizer PSUs and cooperatives, Finance Minister P Chidambaram told reporters here.
These two decisions were taken by the Union Cabinet at its meeting last night.
The Cabinet approved constitution of an Empowered Committee of Secretaries, under the chairmanship of the fertilizer Secretary Atul Chaturvedi, to look into all the financial models for revival of each of the closed units.
The committee, which also comprised secretaries of expenditure, disinvestment, planning commission, department of public enterprises and petroleum and natural gas, will also look into various linkages including gas for facilitating revival of the closed units, an official statement said.
“The committee will submit its recommendations, including the model for revival of each of the closed units to the government,” it said.
Citing the possibility of revival of closed units of Fertilizer Corp of India (FCIL) and Hindustan Fertilizer Corp (HFCL) through brown field projects subject to confirmed availability of gas, the Cabinet also approved setting up of SPV to revive HFCL’s Barauni plant, Chidambaram said.
“The Barauni unit of HFCL will be revived in the public sector through an SPV. The SPV will be promoted by existing fertilizer PSUs and cooperatives,” he said.
SPV is also at liberty to raise funds from other sources and partners at appropriate time, he said.
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First Published: Fri, Oct 31 2008. 02 43 PM IST