Mangalore, Sep 13: Recently-appointed MLC Ivan D'Souza has urged the state and Union government to allow the continuation of the naphtha-based urea manufacturing unit of Mangalore Chemicals and Fertilizers (MCF) Limited at Panambur near Mangalore till it ensured piped gas connectivity.
Speaking to mediapersons at a press conference here on Saturday, Mr D'Souza said that the urea manufacturing unit of MCF was the sole operating unit in the state, which had reached the point of shutting down after the government introduced a policy for manufacturing units to shift from costlier naphtha feedstock to cheaper natural gas.
Few manufacturing units have been given the deadline of September 31 to comply with the policy guidelines. However, the MCF manufacturing unit is not able to comply with the guidelines even after the company had converted its plant to natural gas due to non-availability of gas supply, he said, adding that the company was on the verge of closing.
He said that being the sole manufacturing unit of urea in the state, the closing down of MCF Limited would severely affect farmers and agriculture. With the unit unable to secure gas supplies, the state government and union government should allow the production of urea to continue with naphtha as feedstock till it secures a pipe connection of natural gas, he said, adding that a delegation of elected representative led by district in-charge minister B Ramanath Rai had visited Chief Minister Siddaramaiah with this demand.
MCF Limited has recently sought status quo in the government's subsidy policy for its naphtha-based plants since the gas pipeline project is yet to be completed and commissioned up to Mangalore by the Gas Authority of India (GAIL).
Urging the Union ministers hailing from the state to take up the issue of retaining the urea manufacturing unit of MCF Limited even after the deadline expired, Mr D'Souza said that a delegation of union ministers should pay a visit to Prime Minister Narendra Modi within September 20 to allow the functioning of the urea manufacturing unit in the best interest of the company and farmers in the state.
He also said that the Kudremukh Iron Ore Company Limited (KIOCL) was in a state of loss owing to the cost of raw materials and urged the union ministers to bail the state-run company from the brink of closure.



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