Loan Agreement executed between Department of Fertilizers and HURL for disbursement of Interest Free Loan of Rs. 1257.82 crore to HURL to revive fertilizer projects at Sindri, Gorakhpur and Barauni


New Delhi:A Loan Agreement was executed here today (08.09.2020) between Department of Fertilizers and Hindustan Urvarak & Rasayan Limited (HURL) for disbursement of Interest Free Loan of Rs. 1257.82 crore to HURL to revive fertilizer projects at Sindri, Gorakhpur and Barauni. The agreement was inked in the august presence of Shri DV Sadananda Gowda, Minister for Chemicals and Fertilizers, Secretary (Fertilizers), Additional Secretary (Fertilizers) & Managing Director, Hindustan Urvarak & Rasayan Limited (HURL),

Interest Free Loan (IFL) The agreement was signed by Shri Niranjan lal Director on behalf of Department of Fertilizers (DoF) and By Shri Arun Kumar gupta .MD on behalf of HURL.

Government of India approved grant of Interest Free Loan to the tune of Rs. 1257.82 crore to HURL (Rs. 422.28 crore, Rs. 415.77 crore and 419.77 crore to Gorakhpur, Sindri and Barauni projects respectively). The repayment of IFL would be done in 8 years beginning 2022-23.

Speaking on the occasion, Shri D.V. Sadananda Gowda, Hon’ble Minister of Chemicals & Fertilisers said that the approval of Interest Free Loan to the three units of HURL is culmination of the vision of Prime Minister Shri Narendra Modi to enhance domestic production of urea and reduce import dependency for meeting urea requirements of farmers in India. He said that the release of Interest Free Loan would help the three plants of HURL at Gorakhpur, Barauni and Sindri to start commercial production of neem coated urea by the year 2021. He noted that despite various obstacles being faced by the projects due to covid-19 crisis, physical progress of Gorakhpur, Sindri and Barauni plants at 80.3%, 74.2% and 72.8% have been quite satisfactory. Successful commissioning of plant would add 38.1 LMT of neem coated urea in indigenous production, and it will reduce dependency of import of urea. It will also help “AtmaNirbhar Bharat” campaign of Government of India and will generate direct and indirect employment.

CCEA in its meeting held on 13.07.2016 had approved revival of Gorakhpur & Sindri units of FCIL and Barauni unit of HFCL through nomination basis by forming a Joint Venture of nominated PSUs. Accordingly, a Joint Venture Company was incorporated as Hindustan Urvarak & Rasayan Limited (HURL). Equity of National Thermal Power Corporation Limited (NTPC), Indian Oil Corporation Limited (IOCL) and Coal India Limited (CIL) is 29.67% each whereas in case of Fertilizer Corporation of India Limited (FCIL), it is 10.99%. HURL is setting up three Gas based Urea manufacturing units at Gorakhpur, Sindri and Barauni. The capacity of each plant is 12.7 LMT per annum.