A fertilizer plant with an annual production capacity of 13 lakh tonnes, requiring an investment of Rs. 5,500 core, is being planned in north Karnataka jointly by the State and the Union governments.
Union Minister for Chemicals and Fertilizers Ananth Kumar told reporters here on Saturday that the matter had been discussed with Chief Minister Siddaramaiah, who had agreed to provide 10 per cent equity from the State government as well as 500 acres of land for the plant.
The Union Minister said the State government had to send a proposal to the Centre on the proposed sites for the plant.
To a query, Mr. Ananth Kumar said the techno-economics of the project were yet to be worked out and the proposed sites for the plant had to be identified based on the availability of natural gas. “We have a gas pipeline project from Dhabol to Bidadi via Bengaluru, which is going on in full swing. The major component for the fertilizer plant will be the availability of gas, and the site needs to be finalised after working out the plans, ” he said.
To another query, he said the proposal was in the initial stages and whether the plant should be government-owned or established on a public-private partnership (PPP) model had to be worked out.
The Minister said there would be no change in the fertilizer subsidy policy as it was in place to help farmers.
On complaints about sub-standard fertilizer being distributed in the States, the Minister said while it was the duty of the Centre to ensure the quality of the fertilizer before the release, the subsequent responsibility was that of the State governments and it was their duty to initiate stringent action against companies supplying poor quality fertilizer.
