Wednesday, June 11, 2014

TN CMs plea seeking more time for naptha based fertilizer units to switch over to gas based production hailed

Chennai:
Chemical Industries Association, an apex body representing cross section of chemical and allied industries and based in Chennai has hailed Tamil Nadu Chief Minister for urging Prime Minister to give adequate time to naphtha based fertilizer units -- Madras Fertiliser Ltd., and SPIC  in Tamil Nadu to switch over to gas based production.


Earlier, UPA government issued a directive in April 2014, mandating that all the naphtha based fertilizer plants should switch over to natural gas to avail any subsidy after June .It applies to all naphtha based fertilizer units in India including those located in Tamil Nadu.


Ground reality is that there is no way that the natural gas can be made available to the naphtha based fertilizer units in Tamil Nadu in the near future, as natural gas pipeline facilities are not available to Tamil Nadu from  gas producing stations in the country or from the port terminals where natural gas is imported, the association stated.


The gas pipeline project from Kochi LNG terminal to Tamil Nadu has been stranded due to the agitation by farmers in Tamil Nadu and the matter is pending in the court. Natural gas pipeline from Kochi LNG terminal to Tamil Nadu can be laid and natural gas can be made available to Tamil Nadu  in quick time , if Tamil Nadu government can persuade farmers in the state to withdraw the agitation against gas pipeline   project  by facilitating amicable settlement.


The LNG terminal  project  in Ennore   for import of natural gas is still in the preliminary stage and it is unlikely to be ready before 2018-19.


Under the circumstances, central government should accede to the request Tamil Nadu Chief Minister and waive the stipulation that the  naphtha based fertilizer units in Tamil Nadu should switch over to gas based production before June.


Tamil Nadu government should consider promoting project in the state for the production of substitute natural gas (SNG), which can be produced from coal or petroleum coke. Several such projects are in operation in China and more are being set up  in China.  Project for  SNG production is also coming up in Gujarat state now. The requirement of coal or petroleum coke  for the project can be  imported, if necessary. This project would facilitate natural gas availability in Tamil Nadu  and solve the  present  problem of naphtha based fertiliser units in the state, the association added.

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