The Hindu Business Line : NFCL chief seeks decontrol to strengthen fertiliser industry

`NFCL is supplying roughly half of Andhra Pradesh's annual requirement of urea of two million tonnes. The Indian fertiliser industry is globally competitive but the policies of the Government need to be changed.'

Kakinada , Nov 9

Nagarjuna Fertilisers and Chemicals Ltd (NFCL) is focusing on consolidation rather than expansion, even though the group has plans in the long run to increase its capacity at the plant here and also to take up some ventures abroad, according to Mr K.S. Raju, Chairman and Managing Director.

He was speaking to newspersons at the plant on Thursday on the eve of a felicitation function to be held to honour progressive farmers trained in the company's Krishi Vijanana Kendra.Mr Raju said that NFCL was supplying roughly half of Andhra Pradesh's annual requirement of urea of two million tonnes.

PLANT CAPACITY

The plant here has the capacity to produce 12-13 lakh tonnes of urea a year.

"Of course we can increase it subject to gas availability. In future, we will expand the capacity and we are in negotiations with Reliance, GSPC and ONGC for gas. There may not be any problem."

However, he said, the plant has faced some problems in the recent past. "For the current fiscal, our target is to produce roughly 13.3 lakh tonnes against 13.87 lakh tonnes last year. The slight dip is due to gas shortage."

He added that NFCL was importing urea and marketing 1.9 million tonnes in the country.

MARKET SHARE

"We want to retain our market share. If there is enough feedstock and the Government policies are helpful, we may increase our capacity or we may import the rest."

According to Mr Raju, the Indian fertiliser industry is globally competitive but the policies of the Government need to be changed.

"There should be decontrol and direct subsidisation to unleash the potential of the Indian industry."

On the company's proposal to establish fertiliser plant in Nigeria, he said that all the plans were at a nascent stage and nothing could be said at this juncture.

On Friday, 27 farmers, including five women, would be felicitated. The Kendra has trained 47,000 farmers in the past 11 years.

More Stories on : Outlook | Fertilisers | Andhra Pradesh

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