The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has given its approval for financial restructuring of Hindustan Fertilizers Corporation Limited (HFCL). The Cabinet, amongst other things, approved waiver of GoI loan of Rs. 1916.14 crores (as on 31.03.2015) and the outstanding interest on GoI loan as on date (the interest amount was Rs. 7163.35 crores as on 31.3.2015). The Cabinet also approved transfer of 56 acres of Ash Dyke land of Barauni unit to Bihar State Power Generation Company Limited (BSPGCL) to settle dues of HFCL for faster revival of Barauni Unit.
This Cabinet approval will facilitate de-registration of HFCL from BIFR by making its net worth positive. It will clear the way for faster revival of Barauni unit of HFCL. This unit is lying defunct and was not in operation since January 1999. Therefore, the unit and other associated facilities were lying unutilized. It is important to mention here that there is no functional urea unit in the Eastern part of the country except two small units at Namrup (Assam).
The annual consumption of urea in the country is approx. 320 LMT, out of which 245 LMT is produced indigenously and rest is imported. The setting up of a new unit at Barauni will meet the growing demand of urea of Bihar, West Bengal and Jharkhand. It will also ease the pressure on railway and road infrastructure due to long distance transportation of urea from Western and Central Regions and thereby saving in govt. subsidy on freight. This unit will create opportunities for 400 direct and 1200 indirect employments.
Barauni unit will also serve as anchor unit to Jagdishpur- Haldia gas pipeline being laid by Gas Authority of India Limited (GAIL), which is critical for development and growth of economy and infrastructure in eastern India.