Impatience for gas in the fertiliser ministry

Vol 11, PW 3 (14 Jun 07) News in Brief

Bureaucrats in the fertiliser ministry are growing increasingly impatient with factories that have not signed agreements for free-market gas with Reliance or GAIL.

On 8th June the fertiliser ministry sent a curt letter to companies under its command demanding progress reports on items agreed during a joint strategy meeting between the fertiliser and oil ministries on 9th April. Chaired by oil secretary MS Srinivasan and fertiliser secretary JS Sarma, the 9th April meeting was attended by IFFCO, KRIBHCO, RCF, Chambal Fertilisers, Tata Chemicals, National Fertilisers and Gujarat State Fertilisers, to name a few.

They were directed to begin converting their plants to gas ASAP and to sign transportation agreements with GAIL and Reliance. GAIL was also told to approach Reliance to firm up supplies for fertiliser companies.

Most importantly, fertiliser companies were for the first time permitted to sign gas sales contracts direct with producers and suppliers like Shell and Reliance.