31 October 2008 16:21 [Source: ICIS news]
NEW DELHI (ICIS news)--India’s cabinet has approved the restart of a mothballed ammonia-urea plant in Barauni, in Bihar state, and has laid out plans to revive six other mothballed public-sector fertilizer plants, according to a government announcement on Friday.
The Indian cabinet also approved the establishment of a committee of secretaries, chaired by the country’s fertilizers secretary, to look into the financial dimensions of reviving of the mothballed plants.
All plants considered to be non-viable were shut down in 2002.
An industry source said the move was the result of a political deal within the ruling alliance ahead of elections in the lower house of ?xml:namespace>
The source likened the restarts to setting up new ammonia and urea plants at brownfield sites, which offer the advantage of infrastructure in terms of land, utilities and staff housing.
The Barauni plant would be revived through a joint venture of Rashtriya Chemicals and Fertilisers Limited (RCF), Krishak Bharati Cooperative (Kribhco) and National Fertilizers Limited (NFL), according to the government announcement.
The loss-incurring Hindustan Fertilizers Corp (HFC) owns the Barauni plant, as well as naphtha-based plants at
The Fertilizer Corp of India (FCI) had mothballed its coal-based plants at Talcher, in
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