Indian Fertilizer Ministry provides Rs 1,257 crore interest-free loan to revive 3 plants of HURL

The Chemicals and Fertilizers Ministry on Tuesday provided Rs 1,257 crore interest-free loan to Hindustan Urvarak and Rasayan Ltd (HURL) for the revival of three plants at Sindri, Gorakhpur and Barauni.

HURL is a joint venture between state-owned firms NTPC, CIL, IOCL and Fertiliser Corporation of India Ltd (FCIL).

The loan agreement was executed here between Department of Fertilizers and HURL in the presence of Union Minister for Chemicals and Fertilizers DV Sadananda Gowda; Secretary (Fertilizers); Additional Secretary (Fertilizers) and Managing Director, HURL, according to an official statement.

The Centre approved a grant of interest-free loan to the tune of Rs 1,257.82 crore to HURL for the revival of three closed units. The HURL got Rs 422.28 crore, Rs 415.77 crore and 419.77 crore for Gorakhpur, Sindri and Barauni projects, respectively.

The repayment of the loan would be done in 8 years beginning 2022-23. 

Speaking on the occasion, Gowda said the approval of the loan to the three units of HURL is an important step towards achieving the government''s target to boost domestic urea output and reduce import dependency.

He said the release of loan amount would help the three plants of HURL at Gorakhpur, Barauni and Sindri to start commercial production of neem coated urea by 2021.

The successful commissioning of plants would add 38.1 lakh tonne of neem coated urea in indigenous production, and it will reduce the dependency of import of urea, the statement said.

It will also help the government's Atmanirbhar Bharat campaign and will generate direct and indirect employment.

The Cabinet Committee on Economic Affairs in 2016 had approved revival of Gorakhpur and Sindri units of FCIL and Barauni unit of HFCL.

Accordingly, a joint venture company was incorporated as HURL. The equity stake of National Thermal Power Corporation (NTPC), Indian Oil Corporation Ltd (IOCL) and Coal India Ltd (CIL) is 29.67 per cent each, whereas Fertilizer Corporation of India Limited (FCIL) has 10.99 per cent shareholding.

HURL is setting up three gas-based urea manufacturing units at Gorakhpur, Sindri and Barauni. The capacity of each plant is 12.7 lakh tonne per annum.