Jul. 10, 2012
Revival prospect of the closed Sindri fertilizer factory seems bright as the parent company Fertilizer Corporation of India Ltd (FCI) signed a memorandum of understanding with the SAIL and the National Fertilizers Limited (NFL) on last Friday.
Sources in the FCI corporate office, the company has given rights to SAIL for setting up a steel, fertilizer and power plant on 5,800 acres of land available for use. While the SAIL will set up a 5.6MT steel plant on its own, the 1.15MT fertilizer plant will be set up in a joint venture with the NFL. SAIL has also been authorized to set up a 1,000 MW power plant in joint venture with a company of its choice. Initially, the land use contract has been sealed for 33 years which can be extended further.
The MoU was signed by executive director of SAIL Rakesh Kulshresth, general Manger of NFLB P Kumar and acting GM of FCI corporate office at Ispat Bhawan Sion Kongari. SAIL has already formed a company named SAIL Sindri Project Ltd (SSPL) for carrying out the revival work of the fertilizer factory with its office at Chasnala. Sources said the decisions regarding the takeover of the fertilizer factory assets, fate of people residing in the factory quarters would be taken at a later stage. The SAIL, however, would pay some amount to the FCI in lieu of the infrastructural facilities to be transferred to it which would be utilized for clearing the liabilities of the closed factory. The Sindri factory reportedly owes Rs 147crores to different suppliers and contractors which include IOC and DVC.
The news has come as a great relief to Sindri residents who are eagerly awaiting revival of the factory. With signing of the MoU, the path of getting a BIFR clearance for revival of the factory has also become easier. General secretary of Intuc-affiliated Fertilizer Factory Workers Union N K Sharma congratulated Sindri people over signing of the MoU and said that this had now become clear that Sindri would regain its status of an industrial town. Sindri chamber of commerce secretary Deepak Kumar has also appreciated the move for reviving the closed factory and has appealed to the government to expedite the process. At the same time, he also appealed the government to think over rehabilitating people residing in the town for last five decades.