The Interest free loan has been given to Hindustan Urvarak & Rasayan Ltd (HURL) for the revival of Gorakhpur, Sindri & Barauni projects
Union Minister for Chemicals and Fertilizers D. V. Sadananda Gowda has handed over the cheque of Rs. 813.24 crores out of total amount of Rs. 1257.82 crore to MD, HURL in respect of Interest Free Loan to Hindustan Urvarak & Rasayan Ltd (HURL) for the revival of Gorakhpur, Sindri & Barauni projects. HURL operates environment-friendly & energy-efficient Natural Gas based new Fertilizer Complexes, spurring economic growth in eastern India.
Speaking on the occasion the Minister emphasized that the release of Interest Free Loan to HURL will further strengthen its financial condition during COVID-19. It will also assist HURL to complete its project in time i.e. 2021 and boost the “AATMA NIRBHAR BHARAT” campaign of Government of India by increasing the indigenous production of Urea. The operationalization of above three plants, will reduce the import dependency on urea by 38.1 LMT per annum and it will save huge forex to the Exchequer. The capacity of each plant would be 12.7 LMT per annum. The Minister also informed that HURL projects will create huge opportunities of direct and indirect employment.
The Gorakhpur, Barurani & Sindri projects have achieved 89%, 85.1% and 86.1% progress as on 28.02.2021. Once these projects are commissioned, it would increase our domestic capacity, and further self reliance in urea production. Government had approved Interest Free Loan (IFL) of Rs.1257.82 crore to Hindustan Urvarak and Rasayan Limited (HURL) projects situated at Gorakhpur (Uttar Pradesh) Sindri (Jharkhand) and Barauni (Bihar) on 01.08.2018. Accordingly, a Loan Agreement was executed between Department of Fertilizers and HURL on 08.09.2020.
Hindustan Urvarak & Rasayan Limited (HURL) was incorporated on 15th June, 2016 as a joint venture company by Coal India Limited (CIL), NTPC Limited (NTPC) and Indian Oil Corporation Limited (IOCL) as the lead promoters with Fertilizer Corporation of India Limited (FCIL) and Hindustan Fertilizer Corporation Limited (HFCL) as other two partners.
The three lead promoter companies of HURL namely CIL, NTPC and IOCL are amongst top Maharatna Public Sector Undertaking of the Government of India, belonging to Ministries of Coal, Power and Oil & Natural Gas. These three companies hold a total of 89% equity share with equal partnership, while FCIL and HFCL together have the balalnce 11% share against their usable assets, oppurtunity cost and use of land on lease basis at the three plant locations.