AGARTALA, December 30 (TIWN): Oil and Natural Gas Corporation (ONGC) marked its foray into fertilizer segment by tying up with Chambal Fertilizers and Chemicals (CFCL) for setting up a urea fertilizer plant at Khubal in Tripura. Talking to TIWN today ONGC Asset Manager V.P. Mahawar said that the works for the largest industrial initiative would begin early next year after the testing of the drilled wells ends up.
“We have drilled wells at Khubal following the set up of Chambal fertilizer plant, and now we are testing those later after which we will come to know about the quantity of gas available in the wells for enough supply to the fertilizer plant”, said Mahawar talking to TIWN. According to the early statement of the ONGC officials Tripura government has allotted 800 acres of land to set up a Rs. 5000-crore Urea fertilizer plant.

The ONGC, Tripura Government, and private Chambal Fertilizers and Chemicals had signed memorandum of understanding (MOU) on April 9 to set up the plant in Unakoti district by 2016. The supply of gas to the plant site would be made available from newly discovered Khubal well in the area. However experts are yet to find out a regular source to bring in water to the plant site.

Both the companies have agreed to form a joint venture company in this regard, in which the Tripura government will hold 10 per cent stake. A memorandum of understanding has already been signed between the three parties in this regard on Tuesday. ONGC and CFCL have also agreed to take forward the tie up to other states also.  The new Fertilizer Policy 2012 has several enabling provisions to encourage further investments in the urea fertilizer arena. The gas-based fertilizer complex would need allocation of natural gas by the Empowered Group of Ministers (EGoM), for meeting its feedstock requirement.

The state government has also assured necessary support by way of assistance in creation of infrastructure, availability of water and for evacuation of the fertilizer produced from the project. Earlier, Tripura Finance Minister during the meeting with the Union Finance Minister Arun Jaitley at New Delhi urged the centre for its support towards setting up the Chambal Fertilizers and Chemicals (CFCL).

However when a tension brewed up among the Jhumias following the setting up of Chambal fertilizer plant at Khubal, ONGC Asset Manager V.P. Mahawar said that it is absolutely no issue as the plant will be set up with highly modernized and latest technology.