Hyderabad, September 03: Andhra Pradesh Chief Minister K Rosaiah has urged Prime Minister Manmohan Singh to ensure allocation of 6 MMSCMD gas supply from KG Basin to enable IFFCO’s 2.3 million tonnes per annum (MTPA) plant in the state.
In a letter, dated August 31 to the Prime Minister, released to the media here today, Mr Rosaiah requested him to direct the authority concerned to supply 6 Million Metric Standard Cubic Meter Per Day (MMSCMD) gas supply to the IFFCO’s urea plant.
The plant would require about three MMSCMD gas in the first phase of 1.3 million MTPA urea and another three MMSCMD in the second phase of additional 1.3 MTPA Urea.
”We are facing huge demand-supply gap in fertilisers which can be seen by the long lines and agitations of farmers waiting for fertilisers in the state,” he said in the letter.
He said Indian Farmers Fertilizer Co-operative Ltd (IFFCO) had come forward to invest Rs 10,000 crore and build a 2.6 million tonne capacity urea plant in the state.
It had acquired about 2700 acres of land near Krishnapatnam Port in Nellore district of Andhra Pradesh for setting up an Ammonia-Urea plant in 1997 itself. However, this manufacturing facility could not materialise as there was no availability of natural gas so far, he said.
As KG Basin Gas is available in the state of Andhra Pradesh, a major natural gas pipeline would be passing along with NH 5, close to IFFCO’s existing Nellore site location, which has been authorised to be laid by Reliance Industries Ltd.
The pipeline is scheduled to be completed by the year 2012.
”The farmers of Andhra Pradesh, Tamilnadu and Karnataka can be benefited as this plant will cater to the high demand areas of these states being logistically well connected and equally near to these states, which avoids major transportation cost,” he said.
”Your kind favourable decision of in principle allocation of the required natural gas will enable IFFCO to invest Rs 10,000 crores and make ready their plant by 2013-14 and it will be highly appreciated by the grateful farmers of the state”, Dr Rosaiah said in his letter to the PM.
–UNI