Closed naphtha-based plant Duncans fertilizer at Panki Kanpur is about to complete its rehabilitation and one of its three units is almost ready to start very soon with naphtha as the main feedstock. Reviving of this closed fertilizer unit at Kanpur was sanctioned by Board for Industrial and Financial Restructuring (BIFR). According to this revival scheme Kanpur Fertilizers (KFCL) has to convert itself from naphtha-based plant to a gas-based plant by end of 2013. The unit does not need gas for 2012-13. However, it requires 2.10 MMSCMD for 2013-14. As margins for the naphtha based unit were low, KFCL can not expect to reduce its losses with naphtha as feedstock and only expect to wipe out its accumulated losses by 2015.
Duncans Fertilizer is now known as Kanpur Fertilizers (KFCL) and owned by Jaypee Uttar Bharat Vikas Private Limited (JUBVPL). The company asked the petroleum ministry for laying a pipe line for supply of gas from the HVJ gas pipeline, which is only 18 kilometre away from the company’s closed naphtha-based plant in Kanpur. Earlier the company had asked the petroleum ministry for laying a pipe line for supply of gas
Project Appraisal Committee of Gas Authority of India Limited (GAIL) has made a plan to provide gas connectivity to Kanpur Fertilizers (KFCL) with an investment of Rs 181.41 crore. Panki Fertilizer Plant is only 18 kilometre away from the existing HVJ Auriya-Jagdishpur gas pipeline. This pipeline will start from Sachendi village and will go upto Panki Kanpur.
GAIL wants to synchronized its laying of gas pipeline completion date to the gas delivery schedule of KFCL (customer) indicated in the Gas Transportation Agreement, which is June 2013.
It was also suggested that GAIL should develop a system for industry intelligence to know the seriousness and readiness of the customer for lifting gas to ensure utilization of the pipeline infrastructure as well as return on investment.
A time bound conversion of KFCL from naphtha to natural gas and pipeline connectivity for supply of natural gas from GAIL`s existing HVJ pipeline will go a long way in rehabilitation of the plant and production of fertilizers at competitive prices.Address of JayPee's Kanpur Fertilizers Unit :-
Kanpur Fertilizers and Cement Limited (KFCL)
Cee Kay Estate, Uddyog Vihar
Panki Industrial Area,
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