Standing Committee raps fertilizer dept

NEW DELHI: A Parliamentary Standing Committee has rapped the fertilizers department for not fully utilising the earmarked Rs 5,900 cr fund under the tenth five year plan, saying it would adversely affect the ongoing and future projects.

Pointing out that there was a gap of about Rs 2,534 crore in the allocation and anticipated utilisation, the standing committee on chemicals and fertilizers said it did "not approve such lackadaisical approach on the part of government or PSUs".

Of the total plan outlay of Rs 5,900 crore for the fertilizer public sector undertakings and for the departmental schemes, the expenditure by 2006-07 (terminal year of plan) is estimated at only Rs 3,366 crore, which is 56 per cent of the approved plan outlay, the committee said in its report.

"It is not surprising that there is hardly any capacity addition in the 10th plan in the fertilizer sector," the committee said expressing concern over stagnating fertilizers production capacity in the country.

The report said that the committee was informed that the main reasons for the shortfall in utilisation of plan funds were non-implementation of Hazira Expansion project of KRIBHCO and Ammonia Urea Project at Thal of Rashtriya Chemicals and Fertilisers (RCF).

The exclusion of Indian Farmers Fertilisers Cooperative from the administrative control of the department and closure of some of the PSUs were other reasons submitted before the committee for non-utilisation of funds.

The committee recommended reviewing and streamlining of the entire process of project planning and implementation in the PSUs and cooperative units under the department, besides gearing up for the 11th five year plan.