• Inadequate availability of gas limiting urea sector growth

    Short supply of gas is impeding the growth of fertiliser industry, which is getting only 24 to 26 mmcmd of the fuel as against the allocated 31.5 mmcmd, a Parliamentary panel has said. “The committee note with deep concern that the inadequate availability of gas is one of the major limiting factors to the growth of urea industry in the country,” the Parliamentary Standing Committee on Department of Fertilisers (DoF) said in its report which was tabled in Parliament today.

    The committee said that it is of strong view that pricing and firm availability of natural gas for existing and new units of fertiliser companies are the pre-requisites to raise the indigenous production. “..therefore, desire the Department (DoF) to play a proactive role in association with the Ministry of Petroleum and Natural Gas towards allocation of gas for the existing and new fertiliser plants in the country,” the report added.

    The current requirement for the fertiliser sector is 46.5 mmcmd while only 31.5 mmcmd is being allocated to them. As against that, what is supplied is only 24 to 26 mmcmd of domestic gas. The panel also suggested that the DoF should take up the matter of connectivity of gas pipeline to three naptha based fertiliser plants. There are total 30 urea manufacturing plants in the country, out of which 27 are on gas, while remaining three are on Naptha. Jay Bouwmeester Jersey

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