NEW DELHI: National Fertilizers Limited (NFL) is all set to modernise its three plants to boost productivity and cut costs. The company is also contemplating on taking over at least two government-owned defunct fertilizer plants in Uttar Pradesh, provided the Centre grants either subsidy or soft loans to make these plants operational.

"The process has begun to convert our three plants at Panipat, Bhatinda and Nangal from fuel-run to gas-run units. This conversion will cost over Rs. 1,900 crore and we have urged the Government to provide us at least 80 per cent capital subsidy for it. The Centre will be able to recover the subsidy in 17 to 18 months as the cost of urea production in these units will fall, helping the Government save around Rs. 375 crore from each unit in the form of subsidy on urea," said NFL Chairman and Managing Director, G. S. Mangat, while talking to The Hindu.

About the modernisation plans, Mr. Mangat said the company would be inviting bids from major global players on May 1 for overhauling the plants and providing the machinery. The entire revamp was to be completed by March 31, 2010. "Gas Authority of India (GAIL) has started laying gas pipelines to these plants, which will be completed by September 2009. For the supply of gas, we are taking to multiple players, including private companies," he added.

On the taking over of two non-functional plants in Uttar Pradesh, the CMD said: "We are ready for it provided the Government grant us some monetary grant in the form of soft loans or capital subsidy. Each plant requires a huge investment of Rs. 3,100 crore."

Mr. Mangat said NFL had posted a 17.6 per cent increase in its net profit at Rs. 136.86 crore during 2006-07 against Rs. 116.40 crore in the previous year.

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