GoM on fertilizer policy set up

By Our Special Correspondent

NEW DELHI, MAY 31. The Government today constituted a Group of Ministers to formulate a fertilizer policy which is to be headed by the Finance Minister, Mr. Yashwant Sinha. Other members of the group will include the Chemicals and Fertilizers Minister, Mr. S.S. Dhindsa, the Agriculture Minister, Mr. Nitish Kumar, the Heavy Industry Minister, Mr. Manohar Joshi, the HRD Minister, Dr. Murli Manohar Joshi, the Petroleum Minister, Mr. Ram Naik and the Minister of State for Disinvestment, Mr. Arun Shourie.

The decision to set up the GoM was taken at a meeting of the Cabinet when proposals for revival and restructuring of four fertilizer companies were taken up. It was felt that the revival plans should be considered in the context of an overall fertilizer policy which needs to be formulated. The four companies for which revival packages were submitted are the Hindustan Fertilizer Corporation (HFC), the Fertilizer Corporation of India (FCI), the Projects and Development India Limited (PDIL) and Pyrites, Phosphates and Chemicals Limited (PPCL).

An official spokesperson said the Cabinet Committee on Economic Affairs, which also met today, decided to award 23 oil exploration blocks under the second round of the New Exploration Licensing Policy (NELP-II). Among the companies which have been awarded blocks are the Reliance Industries in a consortium with the Hard Exploration and Production India (HEPI) of the U.K. It has bagged four blocks, including one onland, one shallow water block and two deep water blocks.

The Gujarat State Petroleum Corporation (GSPC) in a tie-up with the Gas Authority of India Limited and Joshi Technologies of the U.S. has bagged an onland block in the Cambay basin while Niko Resources of Canada has also been awarded an onland block in the same basin in Gujarat. Most of the other blocks have gone to the national oil companies, the Oil and Natural Gas Corporation, Oil India Limited and Indian Oil Corporation.

The total estimated exploration investment in all three phases would be about $ 780 millions (Rs. 3,640 crores) including the minimum commitment in phase I of about $ 290 millions (Rs. 1,350 crores).

The government had originally offered 25 blocks, including nine onland, eight shallow water, and nine deep water blocks. Of these, 44 bids for 23 blocks were received by the last date of March 31 this year.

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