New Delhi, May 31
In a major policy decision for the fertiliser sector, the union government today announced to stop the disinvestment process in five public sector fertiliser units including four of the National Fertlisers Limited at
Bathinda, Nangal, Panipat and Vijay Nagar besides the Rashtriya Chemicals & Fertilisers Limited (RCF) plant at Mumbai.
It also affirmed supplying subsidised fertiliser to the farmers, currently costing about Rs 12,500 crore annually to the Central government.
Union Chemicals and Fertilisers Minister Ram Vilas Paswan told mediapersons here that the "government stake in all profit making units including four urea manufacturing units of the NFL at Bhatinda, Nangal, Panipat and Vijay Nagar as well as the RCF plant will not be disinvested.
The disinvestment of the Centre's
stakes in these fertiliser plants initiated by the NDA government about two years ago was now at an advanced stage.
In keeping with the broad policy
parameters of the UPA's common minimum programme, the decision will save thousands of employees from losing their jobs. They have been on the warpath against the Centre's decision to privatise these profit making units.
Interestingly, former Union Minister for Chemicals and Fertilisers S.S. Dhindsa, who hails from Punjab, failed to convince the NDA government to stop the disinvestment of fertiliser plants.
Mr Paswan wondered why the NDA government had decided to sell NFL plants when it was one of the best companies in the fertiliser sector. "The NFL is a profit making company and registered Rs 118 crore profit last year. The RCF, Mumbai, which had incurred a loss of Rs 270 crore last year has shown profits of Rs 160 crore this year."
Expressing concern about the farm sector, he said "we will continue the policy of supplying fertilisers to farmers at subsidised rates. If the USA and Europe can subsidise their agriculture, why should we not offer subsidy on fertliser," Mr Paswan asked
About the loss making fertiliser units, the minister said "all the loss making units, including the Madras Fertilisers Ltd and the Fertilisers and Chemicals Travancore Ltd, which have the potential, will be revived. The ministry will soon clear their restructuring packages.
Mr Paswan noted that the government would explore the possiblity of selling the closed units to private companies at Sindri, Gorakhpur, Barauni and Kanpur to safeguard the interests of workers and increase fertiliser production
Considering the widening gap between demand and supply of fertilisers in the country, the minister said that public and private sector units would be encouraged to increase their capacity and cut cost of production. The ministry aims to increase domestic fetiliser manufacturing capacity from 205 lakh tonnes to 240 lakh tonnes in the next five years.
Mr Paswan disclosed that the government will review the policy of allowing fertiliser producers to sell 50 per cent of their production in the open market. To redress the problems of farmers, a grievance cell has been set up in the ministry under his charge.
