Ramagundam FCI unit revival gets delayed

​Godavarikhani: The much-awaited revival of the Fertiliser Corporation of India (FCI) unit is heading for a delay of at least 6-9 months owing to a gamut of problems creating hurdles for the gas-based urea plant.

The shortage of funds has already delayed the revival of the plant by six months. Moreover, yet to be started works on bringing Yellampalli water, laying HT power lines and gas pipeline will further slow down the project, according to the people in the know. Adding to this, uncertainty over local recruitment at the new plant is looming large over the industrial belt.

The Central government entities -- National Fertilizer Corporation of India (NFCL), Engineers India Ltd (EIL) and FCI-- signed an agreement in January 2015 to float a joint venture (JV) for reviving the Ramagundam Fertilizer and Corporation Ltd (RFCL), the Rs 4,700-crore gas-based project with production capacity of 3,500-tonne of urea per day.

After releasing of funds about six months ago, works on the revival picked up pace and are in progress, says Mallipudi Sundara Raju, an ex-employee of the FCI and president of the FCI Revival Committee, who has been fighting for the revival of the plant ever since it was closed down in March 1999.

Speaking to The Hans India, Raju said: “Telangana government promised Yellampalli water for the RFCL and made water allotment as well, but so far nothing has been done. We request the government to lay down the pipeline bringing Yellampalli water to the project. HT power lines are yet to be erected. The Central government has also allotted the gas for the RFCL. Our source of gas is a main pipeline passing through Manthani area from Kakinada to Gujarat. Now, civil works are in progress.

Earlier, revival works were almost hindered due to lack of funds availability. We took a representation team to Union Minister for Chemicals and Fertilizers Ananthkumar for speedy disbursal of funds. After the Central government releasing the funds, now construction works are going on.”

Prime Minister Narendra Modi inaugurated the revival works, when he opened Mission Bhagiratha from Siddipet recently. “RFCL CEO VK Malhotra is visiting the site and reviewing the work progress every month. The new plant is coming up on just five acres land as against the previous one spread over 100 acres,” adds Raju.

L&T Automation, Simplex, Vijay Tankers, Cinda, Furnace & Fabico, Bhanu Contractors, etc, are participating in the revival works.

According to the JV agreement, it was decided to produce 2,200 tonnes of ammonia per day and 3,500 tonnes of urea. Revival plan envisages generating 4,000 jobs. However, the job creation may not be realized as the modern technology-driven plant requires less manpower. About 1,800 permanent staff and 2,000 outsourcing workers were on rolls at the time of closure.

Kandi Srinivas, member, Revival Committee, and general secretary, Fertiliser Staff, Workers, Contract Labour Union, expresses his concerns over ignoring locals in the recruitment.

“The headcount of the permanent staff is estimated to be in the range of 500-550 in addition to the outsourcing staff running over 1,000. Recruiting locals at the RFCL is our main demand now. Ananthkumar also assured us saying class-IV and other staff recruitment is done through local employment exchanges only,” said Srinivas.

With an installed capacity of 1,800 tonnes, coal-fired urea plant FCIL commenced commercial production in October 1980. But, production used to be in the range of 650-700 tonnes per day due to technical snag. The mounting problems led to its closure. Subsequently, VRS was announced in 2002.
“Local workers account for less than 20 per cent in the ongoing revival works. Contractors brought people from other states.

We demand that those who are laid off should be preferred if they meet age criterion. Otherwise, their children should be given priority in the recruitment. We expect that plant may begin production by June 2018,” adds Srinivas.

“There are no proper amenities for workers engaged in the revival project. There’s no labour camp, no ambulance, no catering facility. Not even safe drinking water is available for workers,” he said.
NFCL and EIL hold 26 per cent stake each in RFCL. Old FCI gets 11 per cent stake for its assets and infrastructure. The Telangana government holds 11 per cent stake in RFCL and its responsibility is to supply water and power.

“There’s a proposal on allocating 10 per cent stake in RFCL to Singareni Collieries. Denmark-based equipment manufacturer gets 10 percent stake,” says Raju.

Raju and his team will again meet Ananthakumar on April 19 to brief him about problems being faced by workers and causes that delaying the revival project. With over Rs 10,600 crore burden of loans and interests, FCIL was referred to BIFR and deregistered in June 2013.

By: Sreenivasa Rao Dasari