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Govt decides to close down HFC, FCI

The government has decided to close down Hindustan Fertiliser Corporation Ltd and Fertiliser Corporation of India except its Jodhpur Mining Organisation, Lok Sabha was informedon Monday.

In a statement in the Lower House, Minister for Chemicals and Fertilisers, S S Dhindsa said this decision was taken after the Union Cabinet considered the revised comprehensive rehabilitation proposals in respect of the remaining units of HFC and FCI based on recommendations of Group of Ministers appointed for the purpose.

He said the Board for Industrial and Financial Reconstruction had declared these two as sick and ordered their winding up on November 2, 2001 for FCI and December 12, 2001 for HFC.

Both companies filed appeals against these orders of BIFR before the Appellate Authority for Industrial and Financial Reconstruction. The appeal of FCI has been dismissed by AAIFR while that of the HFC, which came up for hearing on November 15 has been reserved for orders by AAIFR, the minister said.

He said these two companies while implementing the government decision have offered voluntary separation scheme to its employees. An estimated Rs 691 crore (Rs 6.91 billion) is required for offering VSS to 10,596 employees of these two PSUs, which is being met entirely from the budgetary support by the government.

Opposition protests

An angry Opposition, supported by a Bharatiya Janata Party member and two allies of ruling NDA, Samata Party and Janata Dal (U), created a furore in Lok Sabha over the closure of the two PSU fertiliser companies, even as the government assured members that this would not create any shortage of fertilisers in the country.

Dissatisfied with the government's assurance in reply to a calling attention motion, Samajwadi Party members led by their leader Mulayam Singh Yadav staged a noisy walk out.

BJP member Yogi Adityanath also attacked the government for its failure to reopen Gorakhpur fertiliser unit even after three prime ministers in the past had assured that the unit would be reopened.

Stating that a new fertiliser policy would soon be announced, Dhindsa said the fertiliser industry had been delicensed and there were no restrictions on the setting up of new units anywhere in the country by any company. Fifteen major fetiliser projects have been set up or are under implementation, he said.

In addition, from 2005-06 onwards, 16.52 lakh (1.6 million) metric tonne of urea from Oman-India Fertiliser Company is expected to become available, which the government is committed to buyback on a pre-determined long-term fixed price, he said.

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