Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC)

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Case Studies:
1) IFFCO:
Indian Farmers Fertiliser Co-operative Limited (IFFCO) was registered on November 3, 1967 as a Multi-unit Co-operative Society. The Society is primarily engaged in production and distribution of fertilisers. It is a unique venture in which the farmers of the country through their own co operative societies created this new institution to safeguard their interests. (IFFCO 2013)
Plants owned by IFFCO:
• Kalol Unit (Ammonia - Urea complex) in the state of Gujarat in 1975.
• Kandla Unit (NPK/DAP plant) in the state of Gujarat in 1975.
• Phulpur Unit (Ammonia - urea complex) in the state of Uttar Pradesh in 1981.
• Aonla Unit (Ammonia - Urea unit) in 1988.
• Paradeep Unit (NPK/DAP and Phosphoric Acid Fertiliser
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RLNG which is the main feedstock is presently supplied by GSPCL. The fuels natural gas (NG) and associated gas (AG) are supplied by ONGC/GAIL from nearby gas wells and LSHS & Naphtha are from ONGC. The unit also has plants to produce 6 tpd Dry Ice and 12 tpd Liquid CO2 along with necessary offsite facilities.
Over the years, the production of fertilizer production as per the type of fertilizer is shown below in figure. Liquid CO2 is no more produced, but in 2004-05 it was produced more than urea or ammonia. There are mainly three types of feedstock used in fertilizer industry Naphtha, Natural Gas. R- LNG. Initially Natural Gas was used as feedstock but its erratic supply caused the major problems of unavailability and hence there was shift towards Naphtha but that also proved to be the costlier option and so the focus was on R-LNG. So we can conclude that major feedstock currently for this fertilizer plant is Gas and Natural Gas is unavailable and naphtha is costly so dependency on R-LNG. Government is also promoting R-LNG and it is in a way of making Gas as major feed (Fetilizers). But it all seems problematic Natural Gas although it is cheap it is unavailable and R-LNG is costlier than Natural Gas and it is imported so one cannot depend on that. (The availability of Gas to Urea Units is around 41 MMSCMD against their requirement of 43.14 MMSCMD.) It simply clarifies that there is a demand supply gap in Natural Gas.

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