Replying to a calling attention motion moved by CPM member Dipankar Mukherjee and four others in Rajya Sabha on Friday, the minister said, "Given the magnitude of the fresh investment and other reliefs required, the government has undertaken a due diligence exercise."

Barnala said the government had been providing budgetary support for meeting essential capital expenditure and operational requirements of the two units.He regretted that owing to budgetary constraint and technology as well as feedstock-related issues, it had not been possible to take a final decision on the rehabilitation package for the two units.

Barnala said the situation prevailing in the sick fertiliser undertakings had time and again engaged the attention of parliament. "I fully share the concern. Anearly decision is required."

He said the revival packages, formulated in April, 1995, for the rehabilitation of HFC and Fertiliser Corporation envisaged a limited revamp of their functional units.

The revamp of Haldia project of HFC was not found to be techno-economically viable. Similarly, the revamp of Gorakhpur unit of Fertilizer Corporation was not found feasible, as it would have entailed the setting up of a new ammonia-urea plant.

The requirement of fresh investment for revamp of the functional units of HFC and Fertiliser Corporation was estimated at Rs 465 crore and Rs 1,736 crore, respectively. These revival packages could not be implemented for want of funding tie-up, he said.

An expert group led by ICICI was thereafter constituted to re-formulate the revival package from the standpoint of funding by financial institutions. The expert group has put the requirement of fresh investment for the revamp of Sindri, Ramagundam and Talcher units of Feriliser Corporation at Rs 2,638 crore and that forthe revamp of Namrup, Durgapur and Barauni units of HFC at Rs 869 crore. In addition, various other financial reliefs and concessions in terms of write-off of government loans and accumulated aggregating to Rs 5,006 crore are envisaged to make these packages viable.

On the basis of the expert group which submitted its report in February 1997, the government considered the revival packages and fresh proposals were submitted in July-August, 1997, for consideration of the government. The government decided in October on the revival package for the Namrup unit of HFC. The consideration of the proposals for other units of HFC and FCI was deferred.

The revival proposal for the Namrup unit of HFC involves an estimated investment of Rs 350 crore with a term-loan component of Rs 156 crore from FIs and Rs 194 crore as budgetary support.