The three naphtha-based urea production units in the South have been assured of a ‘positive’ decision in a fortnight by Union Minister for Chemicals and Fertilisers H.N. Ananth Kumar to continue the production with the existing naphtha-fed system till the Centre Government makes available natural gas, it is learnt.
The assurance was given to a Joint Action Committee of employees of Mangalore Chemicals and Fertilisers (MCF), Mangaluru, Madras Fertilisers Ltd. (MFL), Chennai, and Southern Petrochemicals Industries Corporation (SPIC), Tuticorin, which met the Minister in Bengaluru on Saturday.
MCF Mangala Workers’ Union President K. N. Suryanarayana told The Hindu that Mr. Kumar was positive when the committee explained the difficulties being faced by the units, employees as well as the impact on farmers due to non-production of urea. It also informed Mr. Kumar that there was hardly any difference between the prices of naphtha and re-liquified natural gas (RLNG) and the Centre’s directive to switchover to RLNG-fed production held little water. Mr. Kumar reportedly said the decision not to pay subsidy for naphtha-fed urea production from September 30 was taken by the previous UPA government and not by the NDA government. He told the committee that the Centre was in favour of farmers and, in fact, intended to start six more fertilizer production units soon.
The Minister said the managements of the three urea production units had already agreed for RLNG price subsidy till gas connectivity was established to the units, Mr. Suryanarayana said. He added that it meant a reduction of about Rs.2,000 a tonne in subsidy to production units, which might impact the profit margins of the companies. However, the employees’ morale and farmers’ interests would remain intact as the units would continue with the production, he said.
