Paswan seeks early gas connection for fertiliser units

New Delhi, Oct 5 (PTI) Concerned over the risingfertiliser subsidies, Chemicals and Fertiliser Minister RamVilas Paswan has sought early gas connectivity for fertiliserunits to augment domestic output and reduce import dependence. According to government sources, the Minister has writtento the Empowered Group of Minister on gas, headed by ExternalAffairs Minister Pranab Mukherjee, to give a clear directionto GAIL as to when would it complete connection of grids underthe Hajira-Bijapur-Jagdishpur pipeline project. "GAIL should give a roadmap as by when would it beginwork on the connectivity project and also by when will thatbe completed," a source in the Fertiliser Ministry said. In the absence of connectivity, the gas-sale agreement isnot being signed between the potential investors and GAIL, areason why bankers are not ready to finance the urea projectsin the pipeline, he added. Paswan has warned that India may lose Rs 40,000 croreinvestment in the urea sector if the proposed industries arenot provided timely gas connection to run their operations. At present, there are 30 urea units in the country, whichrequire 40 mmscmd of gas against which the supply is pegged at29 mmscmd. However, if the requirement from the proposed revival ofeight sick units as also fresh investments lined up in thesector is taken into account, then the demand would shoot upto 95 mmscmd. India's fertiliser subsidies are expected to go up to Rs1,19,000 crore in 2008-09 fiscal, against Rs 40,338 crore lastyear. The country imported about 50 lakh ton of urea duringlast fiscal but this year the import is expected to reachabout 80 lakh ton. The demand for urea was 250 lakh ton last year against adomestic production of 200 lakh ton. PTI