New Delhi: Department of Fertilizers (DoF) is set to extend an interest-free loan of Rs 1,257.82 crore to Hindustan Urvarak & Rasayan Limited (HURL) to revive fertilizer projects at Sindri, Gorakhpur and Barauni. In this regard, a loan agreement has been executed between DoF and HURL for loan disbursement on Tuesday. The agreement has been inked in the august presence of Union Minister for Chemicals and Fertilizers DV Sadananda Gowda, Secretary (Fertilizers), Additional Secretary (Fertilizers) & HURL's Managing Director. The agreement has been signed by DoF's Director Niranjan Lal and HURL's Managing Director Arun Kumar Gupta.
To revive HURL's fertilizer projects at Sindri, Gorakhpur and Barauni, the government had approved the grant of an interest-free loan to the tune of Rs 1257.82 crore to HURL (Rs 422.28 crore, Rs 415.77 crore and 419.77 crore to Gorakhpur, Sindri and Barauni projects respectively). The repayment of IFL would be done in eight years beginning 2022-23.
Speaking on the occasion, Gowda said that the approval of the interest-free loan to the three units of HURL is the culmination of the vision of Prime Minister Narendra Modi to enhance domestic production of urea and reduce import dependency for meeting urea requirements of farmers in India. He said that the release of interest-free loan would help the three plants of HURL at Gorakhpur, Barauni and Sindri to start commercial production of neem coated urea by the year 2021.
He noted that despite various obstacles being faced by the projects due to COVID-19 crisis, physical progress of Gorakhpur, Sindri and Barauni plants at 80.3 percent, 74.2 percent and 72.8 percent have been quite satisfactory. Successful commissioning of the plant would add 38.1 LMT of neem coated urea in indigenous production, and it will reduce the dependency of import of urea. It will also help 'Aatmanirbhar Bharat' campaign of the government and will generate direct and indirect employment.
CCEA (Cabinet Committee on Economic Affairs) in its meeting held on July 13, 2017, had approved revival of Gorakhpur & Sindri units of FCIL and Barauni unit of HFCL through nomination basis by forming a Joint Venture of nominated PSUs. Accordingly, a joint venture company was incorporated as Hindustan Urvarak & Rasayan Limited (HURL). Equity of National Thermal Power Corporation Limited (NTPC), Indian Oil Corporation Limited (IOCL) and Coal India Limited (CIL) is 29.67 percent each whereas in case of Fertilizer Corporation of India Limited (FCIL), it is 10.99 percent. HURL is setting up three gas-based urea manufacturing units at Gorakhpur, Sindri and Barauni. The capacity of each plant is 12.7 LMT per annum.
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