The naphtha-based urea manufacturing units in southern India, which had to shut production on October 1 after Government subsidies were stopped, are hopeful of a solution emerging in two weeks, with the fertiliser minister assuring them of Government intervention.

The Union Government had asked the naphtha-based plants to switch to gas as the feedstock before September 30, and decided to stop subsidies to those who continued with naptha for production of ammonia and urea.

Mangalore Chemicals and Fertilizers Ltd (MCF), Southern Petrochemical Industries Corporation Ltd (SPIC) and Madras Fertilizers Ltd (MFL) stopped production at their units in Mangaluru, Tuticorin and Chennai, respectively, after subsidies were withdrawn, as they failed to get enough gas supplies to continue production using gas as the feedstock.

A delegation of a joint action committee representing MCF, MFL and SPIC met Union Fertiliser Minister Ananth Kumar on Saturday in Bengaluru, and requested him to continue subsidy for these plants till gas connectivity is provided.

The minister said the decision to discontinue subsidies to naphtha-based urea plants was taken by the previous United Progressive Alliance Government, according to KN Suryanarayana, General Secretary of the joint action committee, who was part of the delegation.

Kumar told the delegation that the Union Government is not in favour of closing down any industries, added Suryanarayana, who is also the president of the MCF Mangala Workers’ Union.

The minister assured the delegation that the subject will be discussed in a Cabinet meeting in Delhi and a positive solution will be worked out within 15 days.

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