The Hindu : New Delhi News : Urea shortage worries CITU

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Tuesday, Jan 02, 2007
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New Delhi

Urea shortage worries CITU

Special Correspondent

NEW DELHI: The Centre of Indian Trade Unions (CITU) has expressed concern over acute shortage of urea in the country, particularly in Madhya Pradesh and Rajasthan.

In a statement issued here on Monday, CITU said that it had anticipated the present crisis when it vehemently opposed the previous National Democratic Alliance (NDA) Government's decision in 2002 to close down seven urea producing units, totalling a production capacity of 20 lakh tonnes, leading to the present shortfall in indigenous production and growing dependence on imported fertiliser.

At that time, the NDA Government was harping on cheaper imported urea costing $ 80 per tonne and it justified the closure on the plea that the production cost of these units including Sindri (Jharkhand), Barauni (Bihar), Gorakhpur (U.P.), Durgapur and Haldia (West Bengal), Talcher (Orissa) and Ramagundam (A.P.) would be much higher when compared to import. "Today the Government is importing urea at a cost ranging between $ 260 to 280 per tonne, which is higher than that of the production cost envisaged after revival. While the Government had imported 20 lakh tonnes of urea in 2005-06, it is likely to import 50 lakh MT during the current year,'' it said.

In view of the present crisis caused due to the suicidal policy over dependence on import, CITU has reiterated its demand for revival of these fertiliser units on a fast track basis. It has also condemned the UPA Government's "lackadaisical" approach towards revival of these units during the past two years, on the pleas of non-availability of gas and naphtha/coal as feedstock. "In sharp contrast, the UPA has acted with over-zeal in reviving the sick Dabhol power plant with naphtha and then with LNG on pressure from the U.S. Government."

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