Fertiliser Min seeks to divert share of Deepak Fertilizer's gas to NFL

05 Jun 2014

Fertiliser Ministry wants to divert share of natural gas that was earlier supplied to Deepak Fertilizer to state-owned National Fertilizer (NFL) for manufacturing urea. In the month of May, Petroleum ministry acting on a request from the Department of Fertilizers (DoF) had stopped supply of 0.75 million standard cubic meters per day of domestic gas being supplied to Deepak Fertilisers on allegations that the private firm was using the cheaper fuel to manufacture market price crop nutrients and not subsidized urea. It asked to stop domestic gas to Deepak Fertilisers, as it manufactures nitrogen phosphorus and potassium (NPK) fertilisers, which have been decontrolled and falls Nutrient Based Subsidy (NBS) scheme.

The department noted that the NFL requires at least 2.8 mmscmd of gas for its three units at Nangal, Panipat and Bhatinda which have been shifted from using fuel oil to gas. Also, its Vijaipur plant needs 0.4-0.7 mmscmd of gas, which currently is being made up by buying costlier imported LNG.

Last year, NFL had converted its three urea manufacturing units one each at Panipat, Nangal and Bathinda to use gas as feedstock from fuel oil with an approximate cost of Rs 4,000 crore.

Deepak Fertilisers & Petrochemicals is one of the leading manufacturers of industrial chemicals and fertilisers in India. The company operates in three business segments- chemicals, fertilisers and real estate.

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