The ministry of chemicals and fertilisers has asked the Prime Minister Manmohan Singh to intervene in getting long term gas supplies for the fertiliser sector.
Union minister of chemicals and fertilisers M.K. Alagiri said in a recent letter to Singh that Rs 24,000 crore of investment for
setting up new and expanding existing fertiliser units is stuck for lack of firm gas supply commitments.
This investment, Alagiri said, can bridge the existing shortages in India, which is importing almost 6 million tones of urea every year. Proposals from six companies to set up new fertiliser units are pending clearance, he said.
“This (import) is expected to further increase if there is no addition to indigenous capacities,” Alagiri wrote to Singh on October 24.
“Though the fertiliser sector has been accorded the highest priority, the same cannot be operationalised till there is firm long term commitment for natural gas for setting up new fertiliser projects in the country.”