Hyderabad: Expansion plans of the Nagarjuna Fertilizer Company Limited for fertiliser production have been hit due to the delay in revival of gas supply by the Gas Authority of India Limited (Gail) post the Nagaram blast incident.
NFCL has been suffering huge losses due to non-production and non-availability of gas. Engineer India Limited, the third party, is likely to take three months to check the Gail pipelines and submit a report. A source in EIL said, “The inspection of pipelines is on. It will take two to three months to submit a report.”
NFCL sources said they are losing crores of rupees for the past one-and-a-half months after the blast.
Gail sources said that they have started the process of cleaning up and repairing damaged pipelines in various locations. “We are taking up the cleaning process since chemicals have accumulated in the gas pipelines. This is a lengthy process,” said a source in Gail.
Due to the pipeline being shut down, Oil and Natural Gas Corporation has closed down majority of its 152 on-land wells in the Krishna-Godavari basin and its production has come down. Gail has said it has been working on short-term, mid-term and long-term plans to resume the supply of gas.
