Joint Venture abroad to meet future Fertiliser demand: Shri Paswan
SAYS EARLY APPROVAL OF NATIONAL PHARMA POLICY WILL HELP THE POOR
Concerted efforts were made
to increase domestic production of fertilizers and improve timely availability
of major fertilizers in adequate quantity during the three years of the UPA Government.
The demand of ferilisers as assessed by the Department of Agriculture was
fully met by the Department of Fertiisers during the last three years.
Addressing a Press Conference here today the Minister for Chemicals &
Fertilisers and Steel, Shri Ram Vilas Paswan said the backlog of fertiliser subsidy
amounting to over Rs. 8000 crore will be cleared by this month end.
Responding to questions the Minister said, the Government is trying to
augment the supply of fertilizer in the long run through establishment of joint
ventures abroad. Initial talks have been held for joint ventures
for production of urea in Saudi Arabia, Kuwait, Nigeria, Egypt and Mozambique.
The Government is considering joint venture projects in phosphorous rich
countries like Tunisia, Algeria, Morocco and Jordan.
Shri Paswan
said the new pharmaceutical policy currently being considered by the Group of
Ministers has several new features to ensure availability of medicines at affordable
prices particularly to those Below the Poverty Line (BPL).
Significant steps were taken
during 3 years of UPA Government in the Fertilizer Sector.
1. Record
production and availability
Concerted
efforts were made to increase domestic production of fertilizers and improve timely
availability of major fertilizers in adequate quantity.
Production of urea, increased to a record level of 203.09 lakh
tones in 2006-2007 from 196.24 lakh tones in 2000-2001. However, production of
DAP remained stagnant at 48.57 lakh tones after reaching a peak at 52.36 lakh
tones in 2003-04 due mainly because of feed stock problems. Shortfall was made
up by importing larger quantity so as to meet demand in time and in sufficient
quantity.
Dept. of Agriculture assessed the requirement of the Fertilizers
as follows:
(lakh tones)
Year |
2004-05 |
2005-06 |
2006-07 |
| UREA | 214.07 | 234.25 | 249.46 |
| DAP | 70.59 | 78.02 | 81.29 |
| MOP | 23.02 | 28.88 | 33.23 |
Assessed requirement was fully met by the Dept. of Fertilizers.
2.
Revival of Closed/sick PSUs
In line with
the UPA Government’s commitment under Common Minimum Programme (CMP) to make every
effort to modernize and restructure sick public sector companies and revive sick
industry, the Government has decided in principle to examine the possibility of
revival of HFCL and FCIL, subject to confirm availability of gas.
The financial restructuring package for the Fertilizers &
Chemicals Travancore Ltd. (FACT), which is the only fertilizer company in the
State of Kerala, was sanctioned. The package
has helped the company in reducing its losses and increasing its operations.
The revamp project of Namrup units of BVFCL was completed and
Namrup-II was commissioned on 22.11.05.
3. Streamlining
distribution and movement
New initiatives
had been taken to streamline distribution and movement of fertilizers at the consumption
points. States are expected to prepare
month-wise, district-wise and company-wise supply plans in consultation with fertilizer
companies. Subsidy will be paid only when fertilizer reaches the districts. Freight
on movement of urea will be paid on actual basis under NPS III. 75% of month’s
requirement will be pre-positioned by the beginning of each month. Buffer stock of urea, DAP and MOP will be maintained
by the nominated fertilizer companies to meet any exigency.
4. Fertilizer
Monitoring System (FMS)
In order to
strengthen the monitoring of distribution and sale of Urea, DAP and MOP, a web-based
Fertilizer Monitoring System (FMS) was developed and put in place.
5. State
Agricultural Ministers’ Conference
A conference of the
State Agriculture Ministers was organized by the DOF on 29th January,
2007 to discuss issues relating to supply distribution and availability of fertilizers
in all parts of the country.
6. Joint venture Abroad
The Oman Indian
Fertilizer Company (OMIFCO), a joint venture between Indian and Omani entities
for production of 16.52 LMT of urea and 2.48 LMT of ammonia was inaugurated on
28.1.2006 in the presence of Hon’ble Minister (C&F and S). Future projects: The matter is being actively pursued with various countries
in Middle East like Saudi Arabia, Kuwait and Qatar and in African nations like
Nigeria, Egypt and Mozambique. Further,
the Government is also setting up of Joint Venture projects for phosphatic rich
countries like Tunisia, Algeria, Morocco and Jordan so that supplies of raw material,
intermediates and finished fertilizers are ensured in future.
7. Fertilizer Advisory Forum
The DoF has
constituted the Fertilizer Advisory Forum to provide a meaningful platform for
dialogue amongst all stakeholders In the
last meeting held, issues such as Dealers’ margin, distribution cost, printing
of MRP o n the bags and making available fertilizers in smaller bags were discussed.
Dealership
Drive
In order to
increase availability, dealers’ network was expanded. DoF has instructed all the PSUs to reserve at least 25% of Dealership
of fertilizers for the members belonging to SCs/STs. PSUs have also been advised to reserve 10%
of fertilizers dealerships for ex-servicemen.
9. Future
Strategy
The Strategy for the future inter alia includes increased availability
of fertilizers in the country , ensure timely availability in adequate quantity,
Monitor availability, Provide reasonable returns to attract investment through
pricing policy of end product and feed stock.
10. Grievances Cell
As a single window for grievance Redressal, a Grievance Cell
has been operational in the office of Hon’ble Minister of Chemicals & Fertilizers
and Steel with a dedicated help line (toll-free telephone No. 1800114400).
11. Pricing Policy for Urea
The Government has notified the New Pricing
Scheme Stage-III for urea units in the country for implementation w.e.f. 1.10.06
to 31.3.10.
12. Prices
of Fertilizers
Price of urea, DAP, MOP and 11 grades of complex fertilizers
have remained same for the farmers during this period.
Prices are: (Rs. Per
tones)
Urea 4830
DAP 9350
MOP 4455
13. Subsidy
In spite of increase in cost of fertilizers, the Government
has completely kept the farmers insulated from this increase in cost and have
increased the subsidy allocations to meet the consumption needs of the farmer
at subsidized level of prices. In 2004-05, the total subsidy on fertilizers was
Rs.15779 crores. It was increased to Rs.18299
crores in 2005-06 and Rs.25952 crores in 2006-07, to ensure that there is no shortage
in availability of fertilizers. The likely requirement in 2007-08 will be Rs. 50284 crore.
14. Welfare
of SC/ST
SC/ST vacancies were filled by initiating a time-bound programme
The major
achievements of the Chemicals and Petrochemicals Department for the last three
years are:-
Pharmaceutical
Policy, 2006 prepared by this Department after discussion with various stakeholders
has been and submitted to Cabinet on 29.12.2006. Cabinet considered it and referred it to a
Group of Ministers (GOM) on 11.1.2007. GOM
was constituted on 31.1.2007 under the Chairpersonship of Shri Sarad Pawar, Minister
of Agriculture and Minister of Consumer Affairs, Food and Public Distribution.
The 1st meeting of the GOM was held on 10.4.2007.
Maximum Retail
Price (MRP) inclusive of all local Taxes has been made effective from the 2nd
October, 2006. Requests have been made
to the industry to print names of the medicine, manufacturing date, expiry date
and MRP in Hindi also in addition to the existing system of English, Ministry
of Health and Family welfare has been requested to amend the Drugs & Cosmetics
Rules to make it compulsory. 11 Pharma companies have agreed to voluntarily
restrict the trade margins for generic medicines to 15% for wholesalers and 35%
for retailers. A booklet of reduced prices
of such 886 medicines has been brought out. The revised prices of these 886 packs were
to be implemented by the companies on packs manufactured after 2nd
October/2nd November, 2006. Out
of 886 medicines, 295 medicines (of 9 companies) with reduced prices are available
in the Delhi market. Most of the companies
have informed that availability of the medicines with reduced prices would be
fully reflected on depletion of their old stocks with Distributors.
The Government has decided to extend purchase preference
in favour of the Pharma PSUs for purchase by Government Hospitals in respect of
102 drugs/formulations. This would further
help in revival of sick Pharma PSUs and also in providing medicines at reduced price to public.
The draft
National Policy on Petrochemicals was deliberated by the Cabinet on 12.4.2007
and approved the National Policy on Petrochemicals. It aims to increase investments in the sector (both upstream and
downstream), the domestic demand and per capita consumption of plastics and synthetic
fibres, facilitate investment in the emerging areas of petrochemicals and achieve
environmentally sustainable growth. This will also facilitate to promote Research and Development in
Petrochemicals and promote Human Resource Development.
The Government
has approved the revival proposal of Hindustan Antibiotics Limited (HAL), Pune,
and Bengal Chemicals & Pharmaceuticals Limited, Kolkata. HAL is already implementing the measures as
approved by the CCEA. Draft Rehabilitation
scheme for revival of Indian Drugs & Pharmaceuticals Limited (IDPL) was considered
by Board for Reconstruction of Public Sector Enterprises (BRPSE) and recommended
for approval. Efforts are being made to
revive the Indian drugs & Pharmaceuticals Limited, Gurgaon.
A Committee has been set up to explore the possibility of revival of Bengal
Immunity Limited (BIL).
The CCEA has
approved the revival proposal for HIL & HOCL. HIL & HOCL has already started
implementing the revival measures as approved by the CCEA. After Implementation of revival proposal, the
companies have positive net worth and showed profit at the end of the year.
The Government
has approved the Assam Gas Cracker Project at a cost of around Rs. 5,460 crores.
The project will produce 60,000 TPA at polypropylene & 2,20,000 TPA
of High Density Polyethylene. It is expected
to gnerate about one lakh direct/indirect employment in N.E. Region. The Joint Venture Company namely M/s Brahmaputra
Cracker & Polymer Limited was incorporated on 8th January, 2007
and the Hon’ble Prime Minister of India laid the foundation stone of this project
at Lepetakata, District Dibrugarh, Assam on 9.4.2007.
The PCPIR
Policy has been approved by the CCEA. The
same has been printed in the Gazette of India (extraordinary) dated 4th
April, 2007. The same is also available
on the web site of the Department (www.chemcials, nic.in). The Chemical and Petrochemcial industry is
crucial for Indian economy constituting about 14% of industrial production and
10.7% of exports. To reap the benefits
of co-siting, integrated Petroleum, Chem. & Petrochem complexes are the best
option. Such Regions can provide excellent
infrastructure for the sector to be globally competitive. The Central Government will consider and approve
applications from the State Governments for establishment of PCPIRs in terms of
this policy and facilitate the availability of external physical infrastructure
linkages including Rail, Road, Ports and Airports. Similarly, the state Government, applying for
a PCPIR, will ensure that all physical infrastructure and utilities linkages under
its jurisdiction are provided. This Policy
has been released on 8th May, 2007. This would act as a model for other investment
regions.
India Chem-2006,
the 4th International Exhibition conference was held from November
8-10, 2006 at Mumbai. There was total
participation by 260 major companies including 140 foreign companies.
There were Exhibitors from 14 countries and Business Visitors from 58 countries. Italy was the partner Country and 40 major Japanese companies participated.
There were 18500 Business visitors to the event.
On the spot business generated at the exhibition is estimated to be Rs.
325 crores, anticipated orders would be much higher.
India Chem 2006 was an overwhelming success and the participants benefited
by the enthusiastic business response.
NIPER, which
is the first national level institute in Pharmaceutical Sciences, is catering
to excellence in education and research in Pharmaceutical Sciences.
The Institute has filed 29 patents during the last 3 years.
03 patents have been granted. NIPER
Act, 1998 has been amended to empower Central Government to set up more NIPERs. Proposal to set up more new NIPER in the country
is at various stages of approval by the Government.
The Government
has approved setting of up three new more Extension Centres of CIPET at Jaipur,
Panipat and Aurangabad. Government approved
a project for setting up “Plastic Waste Management Centre (PWMC) at Guwahati at
a total cost of Rs. 7.90 crores.
National Pharmaceutical
Pricing Authority is being strengthened. Hindi website launched. Prices of 178 bulk drugs fixed/revised. Prices of 2370 formulations packs fixed/revised.
NPPA has been empowered to monitor the price increase from earlier 20%
to 10% per annum in respect of non-scheduled formulations.
Till 31st
March, 2007, claims of 5,74, 327 gas victims have been settled. An amount of Rs. 1546.32 crores has been disbursed.
DNM/AT/CC
(Release ID :28166)