Interest-Free Loan! Another step by Modi government towards Atma Nirbhar Bharat
The government today approved grant of Interest Free Loan (IFL) worth Rs 1257.82 cr to Hindustan Urvarak and Rasayan Limited (HURL) three units - Rs 422.28 cr, Rs 415.77 cr and 419.77 cr to Gorakhpur, Sindri and Barauni projects respectively, according to a government release. The repayment of IFL would be done in 8 years beginning 2022-23
The government today approved grant of Interest Free Loan (IFL) worth Rs 1257.82 cr to Hindustan Urvarak and Rasayan Limited (HURL) three units - Rs 422.28 cr, Rs 415.77 cr and 419.77 cr to Gorakhpur, Sindri and Barauni projects respectively, according to a government release. The repayment of IFL would be done in 8 years beginning 2022-23.
The loan agreement was executed today between Department of Fertilisers and HURL to revive fertiliser projects at Sindri, Gorakhpur and Barauni. Minister for Chemicals and Fertilisers DV Sadananda Gowda and HURL’s Managing Director were present at the time of the signing of the agreement.
Gowda, said that the approval of Interest Free Loan to the three units of HURL was in line with the Narendra Modi government’s push to reduce the dependence on imports by enhancing the domestic production of urea for meeting urea requirements of farmers in India.
The loan will help the three plants to start commercial production of neem coated urea by the year 2021, the release said quoting the Minister.
He noted that despite various obstacles being faced by the projects due to covid-19 crisis, physical progress of Gorakhpur, Sindri and Barauni plants at 80.3 per cent, 74.2 per cent and 72.8 per cent have been quite satisfactory, the release said.
Successful commissioning of plant would add 38.1 LMT of neem coated urea in indigenous production, and it will reduce dependency of import of urea, the release said. It will also help “Atma Nirbhar Bharat” campaign of Government of India and will generate direct and indirect employment, it further said.
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The cabinet Committee on Economic Affairs (CCEA) had in its meeting held on 13 July 2020 had approved revival of Gorakhpur and Sindri units of FCIL and Barauni unit of HFCL through nomination basis by forming a Joint Venture of nominated PSUs, the release said. Accordingly, a Joint Venture Company was incorporated as Hindustan Urvarak and Rasayan Limited (HURL).
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