| HINDUSTAN
FERTILIZER CORPORATION LIMITED
Hindustan
Fertilizer Corporation Limited (HFC) was incorporated
on 14th March,1978 in pursuance of
the decision of the Government of India to reorganize
the erstwhile Fertilizer Corporation of India
FCI. The units at Namrup,Barauni,Durgapur and
Haldia Project, the Eastern Marketing Zone, Fertilizer
Promotion and Agricultural Research Center, Purchase
and Liaison Office, Calcutta and agronomy wing
of FP & ARD at Sindri came under the control
of HFC. As on 31st March, 1998 the
Company had an authorised capital of Rs.1200 crore
and subscribed and paid up share capital of Rs.729.11
crore.
At present
there is only one project under implementation
at Haldia.The details are as under:-
| Name
of the Project |
|
Annual
Capacity for finished products
|
Latest
approved cost(Rs/Cr) |
Expected
Commercial Production |
| Haldia |
I)
|
198000
Ton Ammonia |
281.96
|
No
firm date as the Commissioning activities
have been suspended since October,1986
|
| |
ii)
|
379000
Ton NP(20:20:0) or 500000 Tone NPK(15:15:15)
|
| |
iii) |
165000
Tone Urea |
| |
iv) |
60000
Tone Soda Ash |
| |
v) |
41250
Tone Methanol |
The Haldia
Fertilizer Project was mechanically completed
in November, 1979. However, this project could
not be brought to successful commissioning due
to various reasons.
PRODUCTION
PERFORMANCE
The company
has five operating plants i.e.3 plants at Namrup
(Namrup-I,II,III) one each at Durgapur and Barauni.
The annual installed capacity of the operating
units of HFC is 6.325 lakh tones of nitrogen (excluding
Namrup-I).The company has produced 0.62 lakh MT
of urea upto October'1998.
The details
of the actual production for 1997-98 and target
of production for the year 1998-99 and 1999-2000
along with the corresponding figures of capacity
utilisation for the respective years are given
in Statement-II.
3.
FINANCIAL PERFORMANCE
The company
has incurred a loss of Rs.647.83 crore during
the year 1997-98 and during the year 1998-99 and
1999-2000 the company is expected to incur a loss
of Rs.725.33 crore and Rs. 791.49 crore respectively.
The company has incurred a loss of Rs.397.35 crore
upto October'1998.
4.NON-PLAN
SUPPORT
The company
has incurred cumulative cash loss (before interest
of Govt. of India Loan and Depreciation) of Rs.
1388.21 crore upto 31.10.1998 against which Non-Plan
support received is Rs. 915.18 crore (including
standing charges on Haldia Project). The company
need Non-Plan support to the extent of Rs. 226.01.
crore during the year 1998-99 and Rs. 212.00 crore
during the year 1999-2000 to meet the current
operational expenses and standing charges on Haldia
Project.
5.
VOLUNTARY RETIREMENT
During the
financial year 1997-98, 88 employees opted for
voluntary retirement involving amount of Rs. 2.57
crone and in 1998-99 (upto Oct. 98 ) 21 employees
have opted voluntary retirement involving amount
of Rs.0.94 crore. In 1999-2000 it is expected
about 100 employees will opt for voluntary retirement.
A sum of Rs. 3.15 crore has been sought on this
account for the year 1999-2000.
6.
REFERENCE TO BIFR
In terms of
Section 3(1) of the Sick Industrial Companies
(Special Provisions) Act, 1985, the case of the
company was referred to the Board for Industrial
and Financial Reconstruction (BIFR), declared
it a sick company on 12.11.1992. The BIFR has
appointed industrial Credit and Investment Corporation
of India Limited (ICICI) as the Operating Agency,
directing it to evaluate independently the various
alternatives from the angles of technical, financial
and commercial viability. After evaluation of
various alternatives, a revival package of HFC
was formulated which envisaged the limited revamp
of Durgapur, Barauni and Namrup units. However,
the revival package could not be implemented for
want of funding arrangements. The revival package
was again reformulated by the Government taking
into account the unit wise viability and was submitted
for obtaining the approval of the competent authority
in the Government in August, 1997. The Government
has, in decision taken on 1.10.1997, approved
the revival package in respect of only Namrup
units of HFC at an estimated fresh investment
of Rs. 350 crore. The management of HFC is engaged
in the implementation of the revival package.
7. The data in respect of
project/schemes under implementation, estimates
of internal resources and performance indices
are given in Statement-I,
Statement-III
and Statement-IV
respectively. |
