MCF halts production at Mangalore unit

AJ Vinayak Mangalore | Updated on November 27, 2017 Published on October 01, 2014

On a day open offers for Mangalore Chemicals and Fertilizer by Deepak Fertilisers and rival Zuari Agro kicked off, MCF stopped operations at its urea plant here in the absence of a clear direction from the Centre on extending subsidies for using naphtha as feedstock.

The Government had directed naphtha-based urea units to switch to gas as the feedstock before September 30. It had stated that units continuing to run on naphtha for producing ammonia and urea will not get the subsidy.

No fuel supply

According to company sources, some ₹300 crore had been spent to turn the plant LNG (liquefied natural gas) ready but the Government has not been able to supply the fuel.

Karnataka Chief Minister Siddaramaiah told newsmen here on Wednesday that he would convene a meeting with the MCF management. After that a delegation will meet the Union Government.

Published on October 01, 2014
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