Centre may allow fertiliser cos bid for coal block:Minister

In a move aimed at reducing urea imports and bringing down manufacturing cost, the Centre is working on a proposal that will allow fertiliser makers bid for coal blocks, Minister of State for Fertilsers Hansraj Gangaram Ahir said today. The Minister also said the private players who will be shortlisted for the revival of closed fertiliser plants in Sindri and other places would also be able bid for coal blocks for manufacturing urea. India imports about 8-9 million tonnes of urea annually, out of which about 5 million tonnes are imported from China, where urea is produced using coal.

"We have sufficient coal in our country, so it could be used for producing urea. Therefore now, we are working on proposal so that fertiliser companies which are producing urea would also bid for coal blocks as it is more cost effective feedstock to manufacture urea," Ahir told reporters here. The work has already been started on this regard, he added.

"We want to reduce our dependence on urea imports, therefore we are working on increasing our domestic output and there is sufficient coal in the country, so it could be used for producing urea," Ahir said. On Monday, Coal Minister Piyush Goyal had said that a presentation will be made shortly before Prime Minister Narendra Modi on manufacture of urea from coal. Goyal had said that he, along with Ahir and Union Minister for Shipping and Surface Transport Nitin Gadkari will make the presentation before the Prime Minister.