Amendment to the New Investment Policy
An amendment to New Investment Policy (NIP) is under consideration of the Department of Fertilizers. Stating this in a written reply in the Lok Sabha today, the Minister for Chemicals and Fertiliser said the para (ii) of the New Investment Policy (NIP)-2012 has been notified on 7th October, 2014, so as to ensure seriousness/ credibility of the project proponents under NIP-2012. With the objective it was proposed that all the project proponents will be required to furnish Bank Guarantee (BG) of Rs 300 crores for each project. The BG will be linked to milestones in the project cycle. Out of Rs. 300 crores, Rs. 100 crores of BG will be released after finalization of LSTK/EPCA contractors and release of advance of the contractor’s amount; Rs. 100 crores of BG will be released on completion of requirements ordering and supply to the site or midpoint of the project cycle, whichever is earlier; and the balance of Rs. 100 crores of BG on completion of the project. PSUs are, however, exempted from furnishing the BG.
(c): As of now, Department of Fertilizers has received the following Brownfield/Greenfield/Revamp/ proposals/projects:
S. No. | Company | Projects | Ownership | State |
1. | Zuari Agro Chemicals Limited | Revamp of Ammonia-Urea project at Zuarinagar. | Private | Goa |
2. | IGFL-Jagdishpur | Brownfield Expansion urea project at Jagdishpur. | Private | Uttar Pradesh |
3. | CFCL-Gadepan | Brownfield of Ammonia-Urea units at Gadepan-Kota. | Private | Rajasthan |
4. | GNVFC-Bharuch | Brownfield Ammonia-Urea project at Bharuch. | State JV | Gujarat |
5. | GSFC-Vadodara | Greenfield Ammonia-Urea project at Dahej. | State PSU | Gujarat |
6. | MATIX Fertilizers & Chemicals ltd. | Brownfiled Ammonia-Urea Fertilizers Complex at Panagarh. | Private | West Bengal |
7. | RCF-Thal | Brownfield Ammonia-Urea Expansion project at Thal. | CPSU | Maharashtra |
8. | FACT-Kochi | Brownfield Ammonia-urea project at Udyogamandal, Kochin. | PSU | Kerala |
9. | Kanpur Fertilizers & Cements Limited | Brownfield Project at Panki, Kanpur | Private | Uttar Pradesh |
10 | Bharat Coal Chemicals Ltd | Coal Gasification based Ammonia and urea project, Paradip | Private | Odisha |
11 | Nagarjuna Fertilizers & Chemicals Ltd. | Brownfield Project at Kakinada, Andhra Pradesh | Private | Andhra Pradesh |
(d): The following steps are being taken by the Government to meet the requirement
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KSP