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CM Chandrababu Naidu's promise of fertilizer factory needs gas supply

Iffco fertiliser unit patiently waits for supply of gas till date

Nellore: The fertiliser factory announced by Chief Mi-nister N. Chandrababu Naidu for Nellore district will be a reality only if natural gas is made available.

For instance, fertiliser giant, the Indian Farmers Fertiliser Cooperative Ltd (Iffco) has been waiting since 1997 for natural gas to start its ammonia-urea unit.

The government which allotted 2,700 acre to the proposed project, which can produce 8.26 lakh MT of urea per annum, failed to get the natural gas. As a result the project remained in cold storage since last 26 years. The project cost then was Rs 1,600 crore.

Iffco submitted revised the project report to the government in September 2009, as then Chief Minister, Dr Y.S. Rajasekhar Reddy shown keen interest on establishing the unit.

As per the revised report, the estimated cost of the project was Rs 6,500 crore and its capacity was 13 lakh MT of urea per annum. Iffco sought three million standard cubic meters of natural gas to run the unit and assured to complete the first phase of project within 42 months.

After the sudden demise of Dr YSR, Mr Rosaiah also followed up the matter again with the PM and the petroleum minister, but to no avail. There was no response from the government.

Sources in Iffco said that their organisation also pursued the matter continuously through their letters and even requested then minister of state for petroleum and natural gas Panabaka Lakshmi in 2012.

“Natural Gas is being taken from Kakinada to Baruch in Gujarat through pipeline. We have submitted a plan to tap the gas from the same pipeline at Eluru and lay pipeline up to our project site in SPSR Nellore. The 335 km long pipeline can be completed within a year, if state government takes the initiative and Union minister M. Venkaiah Naidu also is in favour of this,” an Iffco official said.

Referring to government plan in the past to lay pipeline from Kakinada to Chennai for LPG, he said that they can tap the gas from the line near their unit if government permits.

Meanwhile, Gail officials said that there is a proposal to lay pipeline from Kakinada to Chennai and the project is likely to be executed by Reliance.

( Source : dc correspondent )
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